Christopher Milito Comments on Client’s Billionaires Row Foreclosure Dispute in Crain’s New York Business

Morrison Cohen Partner Christopher Milito, who represents The Eretz Group in a foreclosure dispute involving a Billionaires Row office building, was quoted in a Crain’s New York Business article examining the case.

The article explores the unusual circumstances surrounding the foreclosure of 224 W. 57th St., including the building’s $158.7 million foreclosure judgment and the fact that Soros Fund Management holds the mortgage while Open Society Foundations, founded by investor George Soros, is the building’s principal tenant.

Eretz has alleged that Soros Fund’s acquisition of the mortgage and subsequent foreclosure efforts are part of a scheme to facilitate Open Society’s early exit from its long-term lease. Eretz contends that taking control of the property through foreclosure would be a less costly alternative to the substantial penalties associated with terminating the lease before its 2042 expiration.

Christopher told Crain’s, “Unfortunately, (Eretz’s) efforts to repay the mortgage and redeem the property apparently were stymied by forces beyond control.”

The property is scheduled to be sold at a foreclosure auction in Manhattan.

Read the full article in Crain’s New York Business here.