It turns out that there may well be plenty you haven’t discovered about the absolute auction of five unsold condos plus the penthouse (subject to the seller’s confirmation) at 127 Madison Avenue, dubbed m127.
One thing the developer hasn’t volunteered in connection with the sale on June 27 at the Roosevelt Hotel is that the company, Cardinal Investments, is facing foreclosure on the building. A foreclosure motion filed by the Bank of Smithtown is due for a court hearing two days before the auction, according to an attorney quoted by Josh Barbanel in the Wall Street Journal.
Alan C. Polacek, an attorney for the bank, which is based on Long Island, told Barbanel that a court-appointed referee recently put the debt owed by the developer at nearly $9 million.
The newly revealed information – together with an amendment to the developer’s offering plan, financial statements and the purchase contract – suggests a potentially confusing, even financially hazardous, situation for any winning bidders. Continue reading