THE NEW York attorney general Andrew Cuomo is examining Anglo Irish Bank’s role in funding one of New York’s most prestigious apartment buildings.
A spokesman at Mr Cuomo’s office confirmed New York State would be monitoring the deal between Anglo and the owners of the Apthorp building on Manhattan’s upperwest side, previous home to Al Pacino and Conan O’Brien among other stars.
The Attorney General’s office, which protects consumer rights, will assess if apartment purchasers should be informed of a deal in which the Apthorp owners could use up to $130 million (€102 million) of apartments sales money for upkeep and repair of the building.
That could potentially create a large debt on the building instead of repaying Anglo Irish, which is owed $323 million.
In exchange for allowing the owners to use the $130 million for upkeep, Anglo has entered a new deal in which the developers will be in default if they fail to meet sales targets within three years. Anglo can then use an accelerated foreclosure process to recoup its money.
The Apthorp building, known for its grandiose architecture and celebrity residents, was converted from a rental property to a condominium building in 2008, and is one of the most expensive properties in New York City.
The spokesperson said he could not discuss details, only that Mr Cuomo wanted to ensure that apartment purchasers had all relevant facts before making a decision. No wrongdoing on the part of Anglo Irish Bank or the building owners has been suggested.
The consortium that owns the building is lead by Africa Israel USA, which needs money for upkeep of the building, which was constructed in the first decade of the 20th Century and which takes up a full block of property space.
Anglo is understood to be satisfied with the repayment of the $323 million loan, following the restructuring.
It is understood that the current owners are not in default on the debt.
Africa Israel’s chief executive, Richard Marin, did not return calls to his office in Israel and New York but did previously praise Anglo Irish Bank’s courage is agreeing to the deal, which he said showed confidence in the project.
Africa Israel is currently selling office space at the New York Times’ former building on Times Square.
It is also involved in several other high-profile projects in New York and Israel.
