SoftBank’s Fortress Investment Group has paid around $230 million for the defaulted mortgage on Bizzi & Partners + Carlton Group + New Valley + Cindat’s luxury condo tower at 125 Greenwich Street. The debt’s seller was Greg Freedman’s BH3 Capital Partners, WSJ reported.
- Worth Noting: BH3 was moving to foreclose on the nearly completed 88-story residential building in the Financial District. Fortress is expected to continue the foreclosure process.
- Flashback: United Overseas Bank sold the senior debt to BH3 for around $195 million loan last year.
- Distress leads to opportunity: A surge in new construction has created a glut in the market that has created an opening for investors to bail out developers at high interest rates, buy defaulted loans, or take over struggling projects for bargain prices.