It looks like the fate of the planned 900-foot tower at Sutton Place is all but sealed. A judge has denied developer Bauhouse Group's request for an injunction against lender Gamma Real Estate to prevent foreclosure proceedings on the property, The Real Deal reports.
Last week it was reported that Gamma planned to hold the foreclosure sale for the property on February 29 after Bauhouse defaulted on its $147 million loan for the project.
In turn Bauhouse sued Gamma on grounds that the latter was rushing foreclosure proceeds and the loan terms were always stacked against the developer from the start.
Since purchasing three adjacent properties for $40 million last year, as well as the air rights for the nearby fourth, Bauhouse has struggled to get the ball rolling on the 68-story tower. The developers tried to get a partner for the 113-unit building, attempted to get a construction loan, and even had another real estate company do an appraisal of the site, but that has all come to naught so far.
If the foreclosure proceeds as planned Gamma can either take control of the property or transfer it to a developer willing to pay more than the existing debt amount.