The cost of building the thinnest skyscraper in the world soared so high that the owner of the project at 111 W. 57th St. is threatened with deprivation of the right of ownership for overdue debts while the building was completed only a quarter.
The 82-story tower already rises almost 20 stories in height and $ 50 million over budget.
Investment Corporation real estate AmBase filed a lawsuit against the sponsors of the project, Kevin Maloney and Michael stern and creditor Spruce Capital Partners to keep their capital in the Steinway Toweroverlooking Central Park.
«Over the last four years [AmBase] invested more than $ 70 million in property. Two days later, their investments can be destroyed,» — reads the statement of the Supreme court of Manhattan.
AmBase accuses Maloney and stern in cost overruns.
«Apparently, they dropped in his budget a number of significant items including cranes,which cost in new York can reach millions of dollars», — said the lawyer AmBase Steven Meister
According to court documents, in June 2015, the construction budget was $ 855 million.
Owner — Maloney, stern, and AmBase not repaid the loan in the amount of 25 million US $ company, Spruce Capital Partners.
On Wednesday, the judge allowed Spruce Capital Partners to take ownership of the project in arrears, and scheduled the next hearing for mid-August.
However, Spruce Capital Partners may put the building at 111 W. 57th St. At the auction, which potentially will allow AmBase to redeem part of their investments, said Meister.
Stern declined to comment. Maloney and the creditor to answer the phone.
