Bankruptcy proceedings at cash-strapped Morgan Lofts, a 70-condo development at 11 East 36th Street, are moving forward, with a Chapter 11 filing in U.S. Bankruptcy Court last week passed along by a tipster. Back in May, the development began the
seven stages of grief bankruptcy, with distressed debt buyer Michael Shah of DelShah Capital responsible for 22 units. The September 25 paperwork says that two entitles related to the original sponsor, 11 East 36th LLC and Morgan Lofts LLC, could no longer keep up with their costs despite rental income due to "an increase in the real estate taxes and the general decline in the real estate market." Tangent: What market are they in? Though perhaps these institutions' troubles stretch a few years back, since the building was redeveloped in 2006 and had a financial dispute related to nonexistent units that were still getting taxed in 2011.