Lenders Spar Over Foreclosure Of 8 Manhattan Buildings

Law360, New York (December 7, 2011, 7:58 PM EST) -- A New York state judge suggested Wednesday that a lender with a $23 million mezzanine loan was trying to leapfrog holders of a $70 million senior loan and raise the specter of bankruptcy for the owners of eight Manhattan apartment buildings.

The dispute involves mortgage loans taken out by a group of entities that own eight residential developments in Manhattan's Washington Heights neighborhood. The buildings contain 455 mostly rent-controlled or rent-stabilized apartments, according to court documents.

The borrowers obtained a $70 million senior loan secured by...
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