The developers of a stalled Soho condominium at the former home of the Beastie Boys’ Adam Horovitz have filed for Chapter 11 bankruptcy.
A partnership between Stéphane Boivin and Stéphane Bibeau’s Nordica Soho and Joel Schreiber’s Waterbridge Capital owe creditors roughly $26 million, according to the June 27 bankruptcy filing.
Boivin and Bibeau acquired neighboring row houses at 182 and 186 Spring Street for nearly $16 million in 2011, with plans to develop a mixed-use building with several stories of condos. But a year later, they ran into trouble when lender Silo Capital filed a foreclosure suit, claiming that the developers improperly demolished the buildings, which were being held as collateral on a $5.6 million loan.
In 2013, Waterbridge paid $4.5 million for a 49 percent stake in the project, and the new partnership subsequently refinanced the mortgage with Acadia Realty Trust for $12 million. According to city records, second lender, an LLC headed by dentist Michael Aronoff, is owed $9.8 million for offering a “piggyback mortgage” to Nordica Soho for selling its stake to Waterbridge.
According to the Chapter 11 filing, the project stalled and the delay led to defaults on the loans. By filing for Chapter 11, the developers intend to sell the property, which they claim has a fair market value of $38 million.
In 2013, Nordica Soho denied rumors that the property was on the market after the parcels hit StreetEasy with an asking price of $38 million.
The developer shelled out $10.1 million for 182 Spring, and it paid Horovitz $5.5 million for 186 Spring in 2011. Plans called for a mixed-use project with two stories of retail and an ambulatory care facility, plus five stories of condos.
Last year, Schreiber was also sued for $10 million by an investor in 152-154 Spring Street, a boutique condo project down the street.
Investor Marco Di Laurenti claimed in court papers that he sold Schreiber 154 Spring in 2012 for $17 million, and subsequently invested $1.29 million into the project.
But Di Laurenti said Schreiber subsequently sold the retail portion of 152-154 Spring to lender Acadia Realty Trust for $38 million — and Di Laurenti didn’t see a penny of the proceeds. Acadia acquired the retail space by converting Waterbridge’s $38 million mortgage into an equity stake in the project.
In court filings, Schreiber and Waterbridge claim they had “no fiduciary relationship” with Di Laurenti.