Facing high costs, the world's most skinny skyscraper faces foreclosure



Faced with enormous budgetary costs, the world's most skinny skyscraper on Billionaire's Row in New York could be headed for foreclosure, reported New York Post.

The building designed by SHoP on 111 W. 57th Street was built on only 20 stories and is already over $ 50 million in budget. AmBase REIT sued the Manhattan Supreme Court against the project proponents and the lender over the construction cost overruns.

AmBase, which had invested more than $ 70 million in the building, accused sponsors Kevin Maloney and Michael Stern, as well as Spruce Capital Partners.

"Apparently they have omitted some very important elements in their budget, including cranes, which are very expensive in New York and can run into millions of dollars," said AmBase prosecutor Stephen Meister.

Maloney, Stern and AmBase had a June $ 25 million mezzanine loan from Spruce Capital Partners in June, according to the position. The proposed mezzanine loan would allow the lender (Spruce) to take control of the asset in a default situation.

But on Wednesday, a judge applied a strict seizure procedure, blocking Spruce from taking possession of the project. If Spruce puts the building in a state of foreclosure, AmBase could possibly recover some of its $ 70 million investment.

An earlier report from The Real Deal revealed that developers were facing a $ 100 million cash deficit and AmBase has already sued developers last year, claiming they were trying to "dilute its interest" in the project .

The building was to increase by 1,400 feet, or 82 stories. He made headlines as the thinnest building in the world, with a 24: 1 aspect ratio and a floor plate measuring 60 feet by 80 feet.

111 W. 57th Street is not the only building of Billundaire's Row in surplus in difficulty. A penthouse apartment at One57 on 157 W. 57th Street, the supertall that started everything, awaits its foreclosure auction.