Has a group that includes LeBron James and Arnold Schwarzenegger fallen some $11 million in arrears?
A construction firm says yes.
Enter the lawyers.
According to Crain’s New York Business, Developer Georgetown Co. is among several firms that say that’s how much the group of high rollers owes it.
By: Jeremiah Milleaux
The Georgetown Company said: “This is a dispute between a former tenant and its contractor, with no direct relationship to the landlord. Ownership will continue to defend its interests as a third party to this dispute.”
Georgetown Co. is a partner in the office property at 787 11th Ave. A renovation of the 400,000-square-foot building was undertaken, and reportedly included “the installation of two new penthouse floors that are occupied by Ackman’s investment firm, Pershing Square Holdings, as well as an outdoor roof space with a tennis court. Tennis is one of the Wall Street money man’s favorite pastimes,” Crain’s reported.
“Litigation erupted between several of the building’s contractors and its ownership group when the operator of a pair of car dealerships on the ground floor—which were under construction as part of the building’s renovation—declared bankruptcy in 2017,” Crain’s added.
It was one year ago that the Georgetown Company announced it had arranged financing for its office redevelopment at 787 11th Avenue. “The company secured $410 million from Societe Generale, which provided the 10-year commercial mortgage-backed securities loan, Commercial Observer reported.
“We had great reception,” Jonathan Schmerin, Georgetown managing principal, told CO. “We were looking for a CMBS loan and a number — if not all — of the major Wall Street players shared their indication of interest with us.”
The building is one of the city’s premier location. As its web site boasts, “787 Eleventh Avenue is a building engineered for just one type of person: those who demand the best. Want the best look and feel? This building was designed by Albert Kahn and reimagined for modern New York by Rafael Viñoly. The best commute? Drive to work, park onsite – or we’ll send a private car to pick you up. The best amenities? You can’t even imagine what we have in store. This is it. You won’t find better – you can count on that… At 787 Eleventh, you are just a few blocks from dozens of local Hell’s Kitchen hotspots and just as many celebrated eateries. The onsite locker rooms make it easy to take advantage of local gyms and wellness options, like SoulCycle and Equinox. Plus, theaters, galleries, and even Carnegie Hall are all within reach for when planning an evening out after work.”