Morrison Cohen Client Hidrock Featured in Crain’s Regarding Its Lawsuit Against Lender on Hotel Project

Morrison Cohen client, developer Hidrock Properties, was featured in a September 12 Crain’s New York Business article entitled “Stalled FiDi Hotel Project Could Face Foreclosure,” regarding a suit recently filed by Hidrock against lender bank Hapoalim. Although the bank declared Hidrock to be in default on a $33 million mortgage on a Financial District hotel project, according to Hidrock’s claim, Hapoalim had already approved an extension on the loan’s maturity date and is now reneging on its deal.

While development at 140 Fulton Street, which Hidrock bought for $19.8 million in 2018, was stalled by the pandemic, Abie Hidary, principal at Hidrock, told Crain’s that the project, which will feature an outpost of the new Tempo by Hilton chain, is ready to get back on track. Hidary stated, “Business travel is finally ramping back up in New York, and now that Labor Day is past, we expect things to normalize soon. We expect both sides to come to a resolution to get the project built.”

Chair and Co-Managing Partner Y. David Scharf and Partner Aaron Lauchheimer are representing Hidrock in the matter.

Crain’s subscribers, read the full article here.