Luxury Philadelphia Condo Building Could Face Foreclosure
Istar Tara L.L.C., of New York originally had about $251 million in two loans but with recent sales that number is closer to $190 million. The project's mezzanine lender, Delaware Valley Real Estate Investment Fund, which has $57 million invested in the project, sued Istar back in July and its subsidiary, Rittenhouse Pension Investors L.L.C., assumed management of 10 Rittenhouse from developer ARCWheeler Inc. Istar Tara appears to be in major trouble and might see bankruptcy protection. It has a total of $8.6 billion in debt.
Istar also was the senior lender for another Philadelphia-area project, Aria, which then went into receivership, but eventually was revived when a new investor GoldOller Aria Associates of Philadelphia bought the unsold units and commercial space at a sheriff's sale in November.