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Rents Diverted To Lender at Aphthorp

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Some more potential financial woes at the Apthorp, where tenants are being instructed to pay rent directly to Anglo Irish bank instead of the landlord. A result of a "lockbox" provision put into place in 2009 to extend the mortgage loan is that rent goes directly to the bank. The reason for this isn't clear, though a partner at the real estate firm Wolf Haldenstein Adler Freeman & Herz (not involved with the Apthorp) says "One possibility is [that the lender wants to] make up a shortfall if the sponsor is not repaying the loan properly according to the original loan terms". Some salt in the Apthorp's wounds comes in the form of surprise from tenants and skepticism from brokers at the discounts on the final closing prices of some units. Will the Apthorp ever catch a break?
· Apthorp lender diverts rent from landlord [The Real Deal]
· Apthorp coverage [Curbed]