It’s going down — Eric Adams is yelling “timber!”
Maybe not literally. But this week, the city’s Economic Development Corporation selected Artimus and Phoenix Realty Group to develop a 500-plus unit apartment complex on the north shore of Staten Island.
A quarter of the units will be set aside for households earning between 40 and 80 percent of the area median income in what is being billed as the largest mass timber residential project in New York City.
It is, however, going down for Josh Schuster. After being arrested last weekend, the former head of New York-based Silverback Development was released on a $2 million bond. He was arrested on charges that he stole more than $10 million from investors in a Ponzi-like scheme between 2018 and 2022
The 41-year-old Boca Raton resident appeared in New York late Friday afternoon for his arraignment. He pleaded not guilty. If convicted, he faces up to 40 years in prison.
This week brought at least one welcome development in Manhattan’s office market as RXR and Ivanhoe Cambridge secured a three-year extension on a $1 billion mortgage at 1211 Sixth Avenue, a loan previously flagged due to a low debt service coverage ratio.
Ownership plans to invest $300 million to modernize the Midtown Manhattan office building — home to Rupert Murdoch’s media empire — including redesigning the plaza and lobby.
It was also a busy week for Rialto Capital. Jeff Krasnoff’s company filed a lawsuit seeking to foreclose on a loan backing a Chinatown office building owned by the Gluck family’s Stellar Management and Michael Alvandi’s City Urban Realty.
The landlord allegedly defaulted on a $21 million loan tied to 243 Canal Street in June. Rialto, the loan servicer for the joint venture holding the former Signature Bank’s non-rent-regulated commercial real estate loans, has been active in initiating defaults on property owners who secured loans from the failed customer-friendly bank.
The Chetrit Organization had better luck with Rialto. Juda and Michael Chetrit extended their CMBS loan at 393-401 Fifth Avenue by 30 months.
The $95 million loan held by Rialto hit special servicing last year due imminent maturity default, according to Trepp. The Chetrit Organization did kick in additional capital to close the deal.
Read more
RXR, Ivanhoé Cambridge extend $1B mortgage at 1211 Sixth Avenue
NYC taps developers for largest mass timber resi project
Rialto goes after Stellar Management, City Urban Realty