Less Money, Mo Problems for 20 Bayard Developer

According to a story in the Real Deal, the developer of 20 Bayard—who filed for Chapter 11 last month—is engaged in legal haggling with his lender over the use of rental income. Developer Isaac Hager’s lender W Financial Fund is asking a judge to reject Hager’s motion to use rental income from the building to cover maintenance expenses until a credit reorganization plan is hammered out. The condo is half sold and half rental. The story also puts the bankruptcy of 20 Bayard into perspective: “The 20 Bayard collapse is one of the few bankruptcy filings of a completed condo project in New York since the September 2008 collapse of Lehman Brothers. Lenders very often include a so-called “bad boy” clause that holds developers personally liable if they file their projects into bankruptcy to avoid a default.” Two other examples are an Upper West Side building and Greenpoint’s Viridian.
W Financial Fights 20 Bayard Plan [The Real Deal] GMAP
20 Bayard Goes Belly Up [Brownstoner]
Photo by digitalfront.