Turtle Bay's tubular The Alexander is certainly one of the funkiest looking condo towers to spring to life during the building boom, a member of an elite group of "world-class-ugly buildings" that the Post's Linda Stasi said was ruining the neighborhood. But hey, at least it's selling well, right? Um, hold that thought. The Real Deal reports that following an investigation by state Attorney General Andrew Cuomo, buyers at The Alexander have all been offered refunds on their deposits and developer Alexander Gurevich has been barred from selling apartments in New York for three years. Double ouchies! So what did the guy do?
Four buyers had filed suit over "defects" in the offering plan, which triggered the investigation. Cuomo found that the building's sponsor, 250 East Borrower, failed to disclose important financial information about The Alexander's investors, including Gurevich. What important information, you ask? Well...
The sponsors failed to disclose that Gurevich, a practicing attorney, was a principal of 250 East Borrower and the "sole signatory" of the escrow agent, where buyers place their deposits when buying a new apartment.C'mon, the guy named the friggin' building after himself, of course he's involved in every little facet! An amendment to the tainted offering plan says that a new manager has been appointed, replacing Gurevich. Tragically, his name is Peter. StreetEasy shows just 9 units in contract right now (prices average around $1,600/foot in the 88-unit building), but it's anybody's guess on who will go through with a closing.
Buyers were never told that Gurevich was also the principal of Trans Continental Abstract, the title company that was recommended to buyers. They were also not told that Gurevich was the sole principal of Continental Funding, the mortgage lender recommended by the sponsor.
Gurevich also owned a stake in Continental Realty, a firm that issued an opinion letter certifying the adequacy of the building's common charges. Gurevich failed to sign a certification by sponsor, in which a developer swears that statements in the offering plan are true.
· Cuomo bars East Side condo developer from future sales [Real Deal]
· The Alexander [thealexanderny.com]
· The Alexander coverage [Curbed]