3 Sutton Place Rower on Manhattan’s East Side Building, Architect, NYC High-Rise Project, Image
3 Sutton Place Tower Skyscraper
New York Skyscraper Building on the East Side – design by Foster + Partners architects
8 Mar 2016
3 Sutton Place Skyscraper Manhattan
Design: Foster + Partners, architects
3 Sutton Place Tower on the East Side
A Manhattan judge has struck down Bauhouse Group’s request for an injunction against Gamma Real Estate and its planned foreclosure auction of Bauhouse’s 3 Sutton Place condo project, reports the therealdeal.com.
The ruling means that Gamma Real Estate is, for now, allowed to proceed with a foreclosure sale of the 3 Sutton Place development site, at 428-432 East 58th Street in Midtown, currently scheduled for Feb. 29.
Bauhouse Group, led by Joseph Beninati, defaulted on nearly $129 million in loans last month that it had received from lender Gamma, led by Richard Kalikow, for its planned 68-story, Norman Foster-designed condo tower at 3 Sutton Place.
Bauhouse then filed suit in New York State Supreme Court against Gamma last week, and successfully received a temporary restraining order against the lender and its foreclosure auction of the site.
The developer behind Foster + Partners’ 3 Sutton Place tower on Manhattan’s East Side, originally planned to be 290-m tall, lost a fight to block foreclosure proceedings on the site before declaring itself bankrupt this week, reports Dezeen.
Developer Bauhouse Group defaulted on a $127 million (£89 million) loan from Gamma Real Estate and the site was set to be sold, effectively cancelling the project.
But the developer declared itself bankrupt on Monday, the day the auction was due to take place, leaving the future of the project unclear.
The Foster + Partners tower was initially designed to be 80-storeys and was recently cut to 68-storeys as the developer scrambled to save the project, said the Real Deal, a New York real estate newspaper.
Gamma began foreclosure proceedings against Bauhouse to potentially regain control of the property. Bauhouse had sought to stop the proceedings with a restraining order issued by the State Supreme Court.
But on 23 February a judge lifted the restraining order, allowing Gamma’s foreclosure process to advance.
If Bauhouse is forced to give up the site it will be put up for auction, at which time Gamma or another buyer could purchase the property. The decision to declare itself as bankrupt is seen by some as a delaying tactic from Bauhaus.
The site, which includes substantial air rights, could sell for as much as $1 billion (£703 million), according to the Real Deal.
The tower was to contain 113 apartments, together covering over 29,000-square-metres.
The design featured an exposed exterior grid, and the building would have loomed over its neighbours.
Sutton Place is a largely low rise residential street near the East River and is considered one of Manhattan’s more prestigious addresses.
The project had attracted opposition from local residents, who were in the process of requesting a change in zoning policy to introduce height restrictions for the neighbourhood, according to Bloomberg. If successful, this action would also have blocked development of the tower.
Foster + Partners is current working on a 42-storey tower on the East River at UN Plaza and a skinny residential tower on 53rd Street in Midtown East.
Foster + Partners architects
Website: 3 Sutton Place Tower on the East Side
Location:3 Sutton Place New York