Hapoalim says Hidrock is in loan default for FiDi hotel project

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Abie Hidary of Hidrock Properties and 140 Fulton Street (LinkedIn, Google Maps)

A hotel development project in Lower Manhattan delayed by the pandemic appears to be on an unstable financial footing and facing foreclosure.

Bank Hapoalim alleges that Hidrock Properties failed to repay the $32.8 million loan the Israel-based lender provided for its purchase and development of 140 Fulton Street in the Financial District, Crain’s reported.

Hidrock bought the vacant 2,700 square foot land and an adjacent six-story building at 140-142 Fulton Street for $19.8 million in 2018. The property, which had five apartments and a restaurant, was demolished.

Hidrock filed permits in 2019 to build a 139,000 square foot hotel, New York Yimby reported. The site, located mid-block between Broadway and Nassau Street, was to be occupied by a Tempo by Hilton.

But the pandemic brought the 286-key, 40-story project to a halt, and financial troubles soon followed. Hapoalim has pushed back the maturity date of the loan three times, with the last extension coming last October when it moved the deadline to March, according to court records.

But Hidrock reportedly missed that deadline, and Hapoalim notified the developer in May that it was in default.

Hidrock claimed to have been taken by surprise, saying he believed Hapoalim had approved a fourth extension and had officially agreed to do so. Hidrock is asking a judge to rule that the developer did not default on its loan obligations.

“Business travel is finally resuming in New York City, and now that Labor Day has passed, we expect things to return to normal soon,” Hidrock’s Abie Hidary told the publication. “We expect both parties to reach a resolution to get the project built.”

—Pat Ralph

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