Developer Hans Futterman’s vacant Harlem site at 300 West 122nd Street, which fell into foreclosure last year, has hit another snag said source. After Futterman defaulted on a $36 million loan, the site is now headed to a bankruptcy auction, according to an offering memorandum obtained by The Real Deal.
The lender, Ari Shalam’s RWN Real Estate Partners, had forced the scheduling of a foreclosure auction in late November, but that was delayed. Days later, in December, Futterman’s RGS Holdings filed for Chapter 11 bankruptcy protection, records show.
The parties are now preparing for a bankruptcy auction, slated for June 7, at Robinson Brog Leinwand Greene Genovese & Gluck’s Midtown office. The initial bid deadline is May 24. Sources familiar with the site, which offers 205,000 buildable square feet, speculated that it could fetch between $60 million and $70 million.
Futterman, who developed an 89-unit condominium at 2280 Frederick Douglass Boulevard among other Harlem projects, assembled the site for $25.8 million from 2011 to 2015. He secured approvals for a 126-unit condo called the Ladera. The Shell gas station and parking garage on the site have since been demolished.
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The project also has a backup plan for a 183-unit rental building, the offering memo shows.
If it were to go condo, the projected sellout of the project is $240 million, including up to $30 million for a Brownsfields Tax Incentive toward an environmental cleanup, according to the memo.
Sources said Futterman remains hopeful that he will be able to proceed with his plans, despite the looming auction.