Today we return to the Sutton Place tower saga -- a plan that once called for a 900-foot tall tower on the Upper East Side, which is all but doomed at present due to a lack of financing.
On Wednesday, development firm Bauhouse Group, put the project into Chapter 11 Bankruptcy, according to the Wall Street Journal, which is seen as a move to stave off a planned foreclosure sale on the property.
Yesterday, a judge began hearing the case for bankruptcy, which the lenders of the loan to the Bauhouse Group, Gamma Real Estate believe to be frivolous and a means to stall the foreclosure.
The Bauhouse Group on its part reiterated what it said earlier when the foreclosure announcement was imminent in February this year -- that Gamma Real Estate had allegedly 'schemed' to ensure that Bauhouse would never be able to pay back it, according to The Real Deal.
However real estate analysts are now pointing to a larger trend that can be witnessed in the Sutton Place tower debacle -- a cooling down of the luxury market, which has only worsened in the first few months of this year.
Most recently, the developers of 111 West 57th Street postponed sales to next year amid the cooling market. Analysts say it's increasingly difficult for developers like the Bauhouse Group, who don't have prior experience with projects on the scale of the Sutton Place tower, to pull something off of that size.