An $89.5 million slice of junior mezzanine debt tied to projects by Ziel Feldman 's HFZ Capital Group will be sold at a public auction on Nov. 12, according to brokerage Newmark Knight Frank . Beleaguered developer HFZ Capital Group and its leader, Ziel Feldman, are on the hook for more than $136 million to the lender on the company's struggling luxury condominium, The XI, a judge has . The allegations against HFZ and its lenders claim Feldman and Nir offered investors units in their development projects in exchange for capital contributions before HFZ had submitted its offering plans to the AGs office. On Wednesday, Hutcher confirmed the property was sold but declined to share the purchase price or identity of the buyer. As it scrambles to stabilize its business, HFZ is desperately trying to stem expenses and cut deals with lenders. Asuccessful value-generating development goes way beyond the edifice. In 2015, Schneiderman used the Martin Act to reach an agreement with architect-turned developer Peter Moore, who had been accused of offering syndications in a Tribeca condo development at 39 Lispenard Street some time in 2011 before filing his proper paperwork with the AGs office. Last month, Feldman listed his personal triplex penthouse at the Marquand, an HFZ project on the Upper East Side, for $39 million. HFZ is one of New Yorks most prolific condo developers, with projects like the $2 billion XI development on the High Line in West Chelsea and the conversion of several pre-war apartment buildings into condos, including the famed Belnord apartments on the Upper West Side. A successful value-generating development goes way beyond the edifice. The lawsuit also noted that Meir was terminated when the extent of his malfeasance for his personal benefit came to light. Anybody whos in the middle of developing something particularly condominiums, which is a timing business in the best of circumstances is just caught in that, he said. HFZ is . HFZ tenants caught in the middle of its financial woes, Michael Rubin Buys Ziel Feldmans Hamptons Home for $50 Million, Luxe Condos at 'Ground Zero Mosque' Site AimHigh on Pricing. With complete vertical integration and ateam with decades of experience in investing and executing on opportunities across the real estate spectrum, HFZ has the ability to act quickly and decisively when evaluating new opportunities.With assessment and mitigation of risk as akey guiding principle in formulating our strategy and business plan, HFZ boasts atrack record demonstrating success in both sourcing and executing on new opportunities throughout each point in amarket cycle.Investment Criteria Investment description: Seeking yields commensurate with opportunistic and value-add investment strategies. Asset classes: Residential, hotel, office, retail, sports and entertainment. Project type: Ground-up development as well as renovation of existing buildings; master planning opportunities. Geography: Focused on all major urban markets throughout the United States (current projects located in New York, Miami, San Francisco, Detroit, Philadelphia, Chicago and New Jersey). The developer has lost several projects to its lenders and is struggling to hold onto the XI development. With 20 million square feet owned and developed, 2500 residential units brought to market and over 100 city-shaping projects in New York and beyond, HFZ defines and defies the design dictates and fiscal metrics of the luxury real estate market and has done so consistently over the past decade. EisnerAmper LLP and Eisner Advisory Group LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conductand applicable law, regulations and professional standards. CIM, which did not respond to a request for comment, can still go forward with another foreclosure sale if it meets certain conditions. 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HFZ Capital Group is one of the most prolific condominium developers in New York City real estate. He attended Queens College. The venture was seeded with an existing portfolio of properties totaling over 5million square feet and featuring amix of manufacturing, warehouse, distribution, and flex office space as well as significant additional land and development rights. The embattled developer amended a complaint in a lawsuit he filed earlier this year against former HFZ executive Nir Meir. It seemed the $2.3 million HFZ owed had been wired. E-commerce retailer Michael Rubin is the buyer of a $50 million Hamptons mansion sold last month by HFZ Capital Groups Ziel Feldman. HFZ paid Edison Properties about $870 million for the West Chelsea parcel at 518 West 18th Street in 2014. Investor Stage Seed. Meirs attorney described the allegations as a desperate, last-ditch attempt to pressure Meir and said the claims were without merit. Ziel has 1 job listed on their profile. But after filing the original complaint, HFZ retained Morrison Cohen litigator David Scharf, an attorney known for representing high-profile real estate clients such as Donald Trump and for crafting legal complaints geared as much toward public relations as to laying out a legal argument. Following UCC foreclosure proceedings on at least part of HFZs industrial portfolio, Monroe purchased HFZs interest in the buildings at an auction in December 2020 interests that Abrahami says belonged to him. If your principal lenders have lost confidence or trust in current management, it is not a place where current management wants to take the company and still try to retain control, said Tom Lehman, an attorney with Miami-based LKLSG, speaking broadly about bankruptcy proceedings. EisnerAmper Real Estate Services Group Partner Lisa Knee discusses the recent trend of the developer-turned-lender with HFZ Capital Group Chairman and Founder . With adedicated team of 10 investment professionals, the majority of whom have worked with Mr. Reiff for more than adecade and, collectively, have been responsible for completing more than $100 billion of commercial real estate transactions over the past two decades, Allegiant is positioned to be aleader in the real estate debt space due to its combination of vast lending and credit experience and the ability for HFZ to contribute its real estate operating expertise when evaluating opportunities throughout the capital stack. 1 propertymg.com; 3 917609XXXX; 201816XXXX; 212610XXXX; View Similar Profiles. Along the way, HFZ has been dogged by scandal. Soon after, the partners landed a $300 million refinancing from Wells Fargo. Feldman once bragged to TRD that he had the fortitude to move forward at a time of immense uncertainty. In December, Feldman took over day-to-day management of HFZ from Meir. HFZ scored a redevelopment loan from Westbrook Partners. Feldman, chief executive of HFZ Capital, one of the city's swankiest developers . HFZ has tried to keep a lid on certain information getting out. The company has limited options for restructuring. Some still think the XI could come out the other side with no serious wounds. Neither Ziel or Helene Feldman immediately responded to requests for comment. No credit card required. Israeli tech magnate Avishai Abrahami, who founded Wix.com, filed a complaint Tuesday in New York State Supreme Court, alleging that in September 2020, Feldman and Meir pledged HFZs equity interest in three buildings as collateral for a $30 million loan from him only to find out later that the same properties had been used as collateral for a different lender. An entity tied to Monroe sued in December, alleging it held title to the property but Meir was blocking it from taking possession. Nir Meir and HFZ's Ziel Feldman. Four hours later, a reference number popped up on Gibbons phone. Bankruptcy could also force Feldman to relinquish control of the company. In the latest suit, HFZ said it isnt looking to stop the sale of the property but argued the equity and surplus funds rightfully belong to HFZ.. I was one of the only ones buying in 2009 when nobody else was buying and they were hunkering under their pillows wondering when the world was going to end, he said, referring to an acquisition spree in the thick of the Great Recession. The entities falling under the EisnerAmper brand are independently owned and are not liable for the services provided by any other entity providing services under the EisnerAmper brand. HFZ Capital Group Chairman and Founder Ziel Feldman sat down with EisnerAmper Real Estate Services Group Partner Lisa Knee to discuss the origins of HFZ, one of the most prolific condominium developers in New York City. With an expertise in a broad range of real estate disciplines, including underwriting, analytics, structured finance, investment, development, construction and asset management, HFZ capitalizes on development and investment opportunities both in the U.S. and abroad and Find contact details for 700 million professionals. The complaint calls Meir a sociopath 17 times, accusing him of driving HFZs $2 billion XI condo project into the ground and keeping Feldman in the dark about its problems. Beyond their relative value per square foot versus new construction, when refreshed, these venerable properties have the power to become an enduring part of the community and the citizenry of the city in awhole newway. The $7 million sale price was a far cry from the $20 million the 18,500-square-foot mansion was asking at one point, and didnt even cover the $13 million Feldman reportedly spent to buy and overhaul the property. EisnerAmper is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. Developers are required to submit the disclosures to state officials before offering units as a way to protect potential buyers. With his signature project slipping from his control, HFZ Capital Group's Ziel Feldman is slinging some mud. And HFZs proverbial chickens may be coming home to roost. Abrahami is asking the court to make Feldman and Meir personally pay back the loan and accrued interest a total of $33.6 million in accordance with the original agreement. Top HFZ Capital Group Employees Christophe Lagrange Managing Director - Acquisitions and Asset Management. HFZ Capital Group Chairman and Founder Ziel Feldman sat down with EisnerAmper Real Estate Services Group Partner Lisa Knee to discuss the origins of HFZ, one of the most prolific condominium developers in New York City. Seeking out the most prominent architects of our time, HFZ has pushed parameters in every aspect; setting new standards in the process. Meir allegedly used his position as managing partner at the now embattled firm and his control of its finances to divert money to his own pockets. Feldman founded HFZ in 2005, focusing on converting pre-war Manhattan rental buildings into high-end condominiums. Feldman once bragged to, With allegations of intermingling of funds, HFZ might be reluctant to declare bankruptcy. Eisner Advisory Group LLC and its subsidiary entities are not licensed CPA firms. With his signature project slipping from his control, HFZ Capital Group's Ziel Feldman is slinging some mud. In 2012, the company teamed with Related Companies and CIM to take control of One Madison Park, a 600-foot-tall, 53-unit condo project in the Flatiron District. Its investors and lenders have sued to collect more than $300 million, liens from contractors and vendors are piling up, and at the firms flagship project the Bjarke Ingelsdesigned XI condo and hotel spanning a full city block along the High Line sales are slow and construction has stalled. HFZ Capital Group, founded in 2005 by Ziel Feldman, is one of the largest and most influential real estate firms in New York. Wix.com CEO alleges double-dealing in lawsuit, Avishai Abrahami with Ziel Feldman and Nir Meir, and 500 Bailey Ave, Buffalo, NY; 707 Spence Lane, Nashville, TN; 1100 Milwaukee Avenue, South Milwaukee, WI (Getty, Google Maps, NY Supreme Court/Illustration by Alexis Manrodt for The Real Deal). HFZs biggest project is the XI, the Bjarke Ingelsdesigned XI condo and hotel spanning a full city block along the High Line. (Gary Barnett, an ex-diamond trader, joined a few years later.). By Vivian Marino. More than asuccess model, it is proof that HFZs project involvement doesnt end once the last residence is sold. The lender informed HFZ it was in default. Fanatics mogul Michael Rubin is the mystery buyer of a $50 million Bridgehampton mansion previously owned by HFZ Capital Group founder Ziel Feldman, Page Six can exclusively reveal. The fate of one of the citys most anticipated and scrutinized projects now hangs in the balance. Meir has been described as aggressive even by New York developer standards. HFZ pledged the equity interest in those buildings located in New York, Tennessee and Wisconsin to both Abrahami and Chicago-based Monroe Capital, according to the complaint. At the XI, HFZ was mostly silent on sales activity, a common tactic among developers as they are not legally required to publish contract information. HFZ-Reich will acquire additional properties throughout the US and leverage its vertical integration to serve as asingle solution to purchase facilities in as-is condition and repurposing industrial sites for future use and employment. A representative for CIM Group said the company could not respond since it had not received a copy of the complaint, and a spokesperson for Chase declined to comment. It is based on nothing more than rank speculation that Defendants intend to secret the proceeds from the sale, they said. He attended Queens College. In 2018, Westbrook converted that debt position into equity. ), The project was recently embroiled in a mob scandal in which members of the Gambino crime family allegedly bought off an HFZ executive so they could skim hundreds of thousands of dollars from it and other Manhattan projects. The closing was set to take place this week, court filings said. EisnerAmper LLP is a licensed CPA firm that provides attest services, and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services. The Manhattan real-estate industry is a game of winners and losers, Feldman says, and even titans lose big sometimes. The complaint also names lenders JPMorgan Chase and CIM Group, claiming they were aware of the violations and turned a blind eye. Complaint alleges Ziel Feldman offered condo units to investors in projects before filing offering plans, Attorney General Tish James and HFZ Capital Groups Ziel Feldman (Getty). This depth and breadth of expertise enables HFZ to capitalize on opportunities worldwide in arange of asset classes including residential, office, hotel, retail, sports and entertainment.HFZs residential credentials are vast and varied; encompassing acquisition, development and construction of Manhattan mixed-use residential condominiums. Ziel Feldman - HFZ Capital Group Part 1. What we believe we got is something thats extraordinarily well priced for the total package, he said in an interview with The Real Deal in 2015. Meir was a managing principal at HFZ until December. Update: This story was updated to include more details on the Southhampton property, and the judges ruling on HFZs request for an order of attachment tied to the propertys sale. The 36- and 26-story structures topped out in March and will contain 236 condominiums and a 137-room Six Senses Hotel Resorts Spas, the first location in the United States.
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