So you've been reading about the hot mess that is the Sheffield57 over the past couple of years, and your reaction to all the controversy and assorted legal issues is this: I want in! Well, too bad, because The Real Deal reports that sales at the massive Hell's Kitchen condo conversion have been suspended due to an expired offering plan. Attorney General Andrew Cuomo needs to approve a new 19th amendment to the plan before Sheffield developer Kent Swig can resume giving the people what they want, crave, desire and need. The Real Deal got hold of someone in the sales office who said the issue should be resolved in a couple of weeks, but as TRD notes, the timing couldn't be worse:
The decision by the attorney general comes at a critical time for Sheffield57, which sources say has millions of dollars in mezzanine debt coming due this month, and is actively trying to refinance the building. Analysts say that with less than half of the building's projected 587 apartments sold, lenders will be reluctant to finance a building with so many fundamental challenges. "It really hinders the ability of anyone to refinance unless they're able to put up a tremendous amount of their own equity," said Dan Fasulo, managing director of research at Real Capital Analytics. "The situation just gets that much more complicated."
Though on the bright side, this being Sheffield57 and all, we're not sure the situation can get much more complicated. Play us off, guys!
· AG Forces Sheffield57 to Suspend Sales [Real Deal]
· Sheffield57 coverage [Curbed]
· Sheffield57 [Official Site]