NYC Billionaires’ Row Is Reaching Its Second Foreclosure In A Month

Auction is the second scheduled in a month for a One57 unit and it could set a NYC foreclosure record.

By Nagidmy Marquez June 28, 2017

Another one bites the dust at One57. One more luxury condo at Manhattan’s One57 is scheduled for a foreclosure auction. And believe it or not, this will be the second time in a month that a property seizure is slated to be sold in a foreclosure auction. The record not only goes to the number of units for foreclosure in this building, but also this current one might be the biggest in New York City high-end residential history.

“It’s probably the most-expensive foreclosure we’ve ever seen in luxury development,” Donna Olshan, president of Olshan Realty, told Bloomberg. “I don’t know of a foreclosure that’s larger than that.” The penthouse (apartment 79), the eighth-priciest sold in the building ($50.9 million), will go to auction on July 19.

Related: The Demand For The No-Frills Non-Luxury Rentals In Manhattan Is At All-Time High

Let’s look at some of its history. First, One57 is home to the city’s only $100 million condo. Second, not too long ago, it was the city’s tallest residential building until the $1.3B supertall skyscaper, 432 Park Ave, was completed.The 6,240-square-foot unit was purchased for $50.9 million in 2014, with a $35.3 million mortgage loan from Banque Havilland (based in Luxembourg).

The process was very straightforward. It was due to be paid in full a year after purchase, but guess what? No such payment was made by the shell company the unit was registered under. Back then, the owner of the apartment was a total mystery. The buyer hid the purchase behind an LLC, One57 79 Inc., according to PropertyShark.

The mystery seems to be solved since recently, The Real Deal revealed the real identity of the wealthy, or maybe not anymore, buyer. Everything seems to indicate that a controversial Nigerian energy magnate, Kolawole “Kola” Aluko, executive director of Atlantic Energy, is the owner of the 79th floor penthouse at One57.

Related: Another Super Tall Tower Takes To The Skies On Billionaire’s Row

Of course, there is some drama in the horizon. According to The Guardian. the Nigerian businessman is believed to be hiding out on same yacht he rented to Jay Z and Beyoncé for $900,000 a week. His bank listed the same yacht, the Galactica Star, as collateral in the foreclosure, but the yacht is ‘out of range’ at the moment. It was last registered in the Bahamas in May.

Of course, the apartment will be sold to the highest bidder in a foreclosure auction in July. As previously mentioned, this is the second apartment in the building to face foreclosure. A unit on the 56th floor, sold for $21.4 million in July 2015, hit the auction block on June 14. Public records have yet to reveal any transfer of ownership for that property. It is rumored that the owner was Sheri Izadpanah, an international businesswoman and fashionista. She is also the associate editor at a Dubai-based luxury fashion magazine called Mojeh.

Nagidmy Marquez

ABOUT THE AUTHOR Nagidmy Marquez

ABOUT THE AUTHOR Nagidmy Marquez

Nagidmy is a global communications strategist with more than 13 years of experience in the creation, curation and implementation of strategic content and integrated communications practices. She has worked across different regions and cultures of the world including: United States, Latin America, Europe and the Middle East. She is a Mafalda and Don Quixote lover.

    Stefano Boeri, the architect mastermind behind the famous plant-covered skyscrapers, is now designing Forest Cities in Liuzhou, China. #ForestCity #China
    Auction is the second scheduled in a month for a One57 unit and it could set a NYC foreclosure record. #BillionairesRow #Foreclosures
    Once a couch-surfing website, Airbnb moves on to luxury properties, further disrupting hospitality industry. #Airbnb #Luxury
UN New York Hotel To Rebrand As Millennium Hilton New York One UN Plaza
The United Nations Plaza complex is an iconic landmark in Manhattan. It is a key property located across from the United Nations Headquarters that is…
Houses, Not Warehouses Act Might Be A Game Changer For NYC’s Housing Crisis
NYC is, indeed a city of contrasts. Just when you think that no parcel of land is safe from rampant development, including jails and houses…
Could Your Next Real Estate Agent Be A Robot?
Big data, robotics and artificial intelligence are starting to be used to sell residential real estate. As the technology evolves, it is fair to ask:…
Rich Or Poor—Nobody Can Afford NYC’s Median Rents, Study Says
Just because you are rich, doesn’t mean you can afford to live in New York City. No one can—except for the top one percent and…
Developers Jump Aboard The Trend To Revamp Transit Hubs And Remake Cities
Never has the often used marketing term, “close to transportation” been more important when attracting home buyers. These days it’s not just homes that are…
The Demand For The No-Frills Non-Luxury Rentals In Manhattan Is At All-Time High
What makes for a hot, sought after rental unit in a struggling Manhattan market? It is easier to say what doesn’t — it definitely isn’t…
Surviving The First Year—Three Simple Rules Every New Real Estate Agent Needs To Follow
Every year, thousands of people successfully obtain real estate salesperson’s license and join the already overcrowded real estate industry. Unfortunately, roughly 87 percent of these…
Four Countries To Retire In With $200K In Savings—And How Much Real Estate Costs There
Ever dreamed of retiring abroad? You know, affordable healthcare, better climate, more positive news—becoming an expat seems like an enticing option, especially one you no…