Owners Of $1M+ Downtown NYC Apartments Face The Boot As Condo Developer Faces Foreclosure; Association Broke, Utilities Shutoff Threatened

In Battery Park City, the New York Post reports:

• Dozens of financial-industry professionals may lose their new Battery Park City condos because the building's developer allegedly defaulted on debt payments, which forced the property into foreclosure and threatens an immediate shut-off of heat and electricity. It's a bitter irony for the residents of 225 Rector St. - many of whom made fortunes on Wall Street - that the nationwide bank-fueled foreclosure crisis has come full circle to hit them in their own homes.

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• The common fund to pay for doormen, heat and electricity is nearly broke and all services could be cut off by the end of the week, [one owner] said. [...] New buyers, who paid more than $1 million for a one-bedroom, started moving in last summer as construction on the building's common areas continued. But suddenly in mid-December, all work stopped and the sales office closed.

• "People spent millions to live in a first-class building, and they're living in a permanent construction zone," says Marc Held, an attorney for Lazarowitz & Manganillo, who represents the buyers.

Reportedly, the developer only sold about 70 units in the 306-unit building.

For the story, see CONDO CRISIS HITS WALL ST. HIGH ROLLERS.