We had a little tiny office with no heat and Home Depot card tables for desks, Maloney has said of that period. By Emma Whitford. In 2018 he paid more than $40 million for a downtown Manhattan penthouse at 160 Leroy Street, a record price for below 14th Street. Still, HFZs acquisition, for an astonishing $1,100 per square foot, immediately drew skeptics. A spokesperson for Meir put the exit down to differences of opinion about the future direction of the business, adding that Meir remains committed to helping the company resolve outstanding issues surrounding its current projects., A spokesperson for HFZ, meanwhile, said only that Meir is no longer with HFZ nor authorized to act on its behalf in any capacity.. At HFZ, Feldman and Meir had a good cop/bad cop dynamic, according to multiple people who know them. Ziel Feldman is Chairman/Founder at Hfz Capital Group. No credit card required. A spokesperson for Meir said at the time he remained a vested partner in the firm, which he co-founded with Feldman in 2005. Asuccessful value-generating development goes way beyond the edifice. Construction should be buzzing at the XI, the pair of dancing towers in West Chelsea where HFZ hopes to sell, HFZ paid Edison Properties about $870 million for the West Chelsea parcel at 518 West 18th Street in 2014. The complaint also names lenders JPMorgan Chase and CIM Group, claiming they were aware of the violations and turned a blind eye. Meirs attorney described the allegations as a desperate, last-ditch attempt to pressure Meir and said the claims were without merit. HFZ originally filed a tamely worded complaint against Meir in April, accusing the former executive of defrauding the development firm and hoarding fringe benefits including a pricey Hamptons home. In 2012, the company teamed with Related Companies and CIM to take control of One Madison Park, a 600-foot-tall, 53-unit condo project in the Flatiron District. Lisa Knee is a Tax Partner and National leader of the firm's Real Estate practice and the National Real Estate Private Equity Group with expertise in the hotel, real estate, financial services, aviation and restaurant sectors and is a member of AICPA, New York State Society of Certified Public Accountants and the New York State Bar Association. HFZ brings its operational resources as well as its relationships and expertise in the capital markets in order to grow together with its partner companies. HFZ has also been accused of intermingling funds at the XI. Mr. Feldman, 54, is the founder and managing partner of the HFZ Capital Group, a real estate development and investment company that he formed in 2005 . The complaint comes after TCI scheduled a foreclosure auction to take control of HFZs ownership stake in the XI, a mixed-use development on the High Line. The embattled developer amended a complaint in a . With adedicated team of 10 investment professionals, the majority of whom have worked with Mr. Reiff for more than adecade and, collectively, have been responsible for completing more than $100 billion of commercial real estate transactions over the past two decades, Allegiant is positioned to be aleader in the real estate debt space due to its combination of vast lending and credit experience and the ability for HFZ to contribute its real estate operating expertise when evaluating opportunities throughout the capital stack. More recently, the Six Senses Hotel at The Eleventh will be this notable hospitality groups first project in the United States. The firm has approximately 15 million square feet under ownership and . The complaint quotes a line from Ray Liottas character in the movie Goodfellas, comparing the hedge fund to gangsters who burn down a restaurant once theyve extorted everything they can from it. Filings with the state attorney generals office show that as of April, just 38 units, or about 16 percent of the 236 condos, were in contract. HFZ is facing a reckoning across its portfolio after making big bets before the market turned. Get contact details including emails and phone numbers As adeveloper and adesign connoisseur with apersonal and professional connection to New York, Ziel Feldman is committed to positively evolving the culture of the city for posterity. Still, word spread that deals were slow. (business & personal). One investor, New York-based Arel Capital, recently filed a lawsuit alleging that JPMorgan, a lender on HFZs XI development, pressured the developer to divert money from its conversion projects to the struggling West Chelsea project. Meir filed a countersuit in January, claiming he owned 95 percent of the property, and accusing Monroe and HFZ of scheming to fraudulently transfer the property to reduce Feldmans debt. Leveraging HFZs wide-ranging experience across the real estate and development spectrum, the company has entered into several corporate level partnerships in order to further broaden its holdings and offerings across multiple strategies and asset classes. Please call me. HFZ is converting the century-old rental building at 344 West 72nd Street into family-sized luxury co-op units. An equal focus on construction and preservation allows the continual development of attainable luxury properties that carry asense of history in arange of livable neighborhoods. Meir was a managing principal at HFZ until December. What we believe we got is something thats extraordinarily well priced for the total package, he said in an interview with The Real Deal in 2015. HFZ Capital Group. HFZs eclectic and distinguished portfolio is designed to be appreciated from both acreative and investment perspective. UPDATED, April 15, 2021, 8:24 p.m.: HFZ Capital Groups Ziel Feldman says his former partner Nir Meir used their development firms bank account as a personal piggy-bank to bankroll his lavish lifestyle. People Like . Ziel Feldman - HFZ Capital Group Part 1. Monroes suit was discontinued in March. In October, USIS, a technology systems installer, sued HFZ and the projects general contractor, Omnibuild, claiming that it was owed $1.7 million on an $8 million bill for electrical work at the XI. The lender has already held talks with at least one prominent New York developer about getting the project over the line, the people added. EisnerAmper Real Estate Services Group Partner Lisa Knee interviews HFZ Capital Group Chairman and Founder Ziel Feldman, who looks back on his first property, in Part 5 of this series. Abrahami wants the court to enforce a so-called good guy guarantee, signed in September 2020 by Feldman and Meir, making them personally liable for the loan. The entities falling under the EisnerAmper brand are independently owned and are not liable for the services provided by any other entity providing services under the EisnerAmper brand. HFZ Capital Group Chairman and Founder Ziel Feldman discusses his current projects in Detroit with EisnerAmper Real Estate Services Group Partner Lisa Knee in Part 3 of this series. Ziel Feldman is the Founder and Principal of HFZ Capital Group. What we believe we got is something thats extraordinarily well priced for the total package, he said in an, Filings with the state attorney generals office show that as of April, just 38 units, or about 16 percent of the 236 condos, were in contract. The project currently has a number of challenges and needs to be recapitalized and restructured, an HFZ spokesperson said. Particularly if its a spectacular location.. Three of the most prolific condo developers in New York got their start together at Property Markets Group, which Feldman, a Queens-born former real estate lawyer, co-founded with banker Kevin Maloney in 1991. No credit card required. Two years later, HFZ scored a $1.25 billion condo construction loan from the Childrens Investment Fund, a U.K.based hedge fund with a reputation for high-interest financing. A successful value-generating development goes way beyond the edifice. Eisner Advisory Group LLC and its subsidiary entities are not licensed CPA firms. Some still think the XI could come out the other side with no serious wounds. A spokesperson for Attorney General Tish James confirmed the office received the complaint, but declined to comment further. Ian Schrager, who partnered with HFZ on his Public Hotel and condo project on the Lower East Side at 215 Chrystie Street, said Feldman and Meir are just victims of the market and the pandemic. Update: This story was updated to include more details on the Southhampton property, and the judges ruling on HFZs request for an order of attachment tied to the propertys sale. On Wednesday, Hutcher confirmed the property was sold but declined to share the purchase price or identity of the buyer. Ziel Feldman's beleaguered development firm HFZ Capital Group has accused its former executive being a "faithless servant" by looting the company's coffers, according to three ;lawsuits filed . With 20 million square feet owned and developed, 2500 residential units brought to market and over 100 city-shaping projects in New York and beyond, HFZ defines and defies the design dictates and fiscal metrics of the luxury real estate market and has done so consistently over the past decade. Douglas Elliman, which handles sales at the project, has tried, unsuccessfully, to, The project was recently embroiled in a mob scandal in which members of the, Three of the most prolific condo developers in New York got their start together at Property Markets Group, which Feldman, a Queens-born former real estate lawyer, co-founded with banker Kevin Maloney in 1991. We are the ones out there, acting in good faith and trying to deal with these issues. He said Meir believes HFZ owes him in excess of $25 million based on participation in development deals. 1 propertymg.com; 3 917609XXXX; 201816XXXX; 212610XXXX; View Similar Profiles. Its investors and lenders have sued to collect more than $300 million, liens from contractors and vendors are piling up, and at the firms flagship project the Bjarke Ingelsdesigned XI condo and hotel spanning a full city block along the High Line sales are slow and construction has stalled. An entity tied to Monroe sued in December, alleging it held title to the property but Meir was blocking it from taking possession. EisnerAmper provides some federal and state resources that are providing coronavirus-related assistance. But in an affidavit filed Wednesday, lawyers for Meir opposed the request. {{ userNotificationState.getAlertCount('bell') }}. HFZ tenants caught in the middle of its financial woes, Michael Rubin Buys Ziel Feldmans Hamptons Home for $50 Million, Luxe Condos at 'Ground Zero Mosque' Site AimHigh on Pricing. Earlier this month, a judge ordered HFZ and Feldman to pay $136.2 million to TCI over defaulted loans tied to the XI. Former AG Eliot Spitzer used it frequently to investigate Wall Street, as did his successor Eric Schneiderman. Moreover, the Brazilian mining giant Vale alleges that Israeli diamond magnate Beny Steinmetz illegally stashed money in 13 HFZ projects. Many developers saddled with unsold units in a sluggish market are in a tight spot. Theyre seeking to blame him as a scapegoat and we wont tolerate it, said Meirs attorney, Larry Hutcher. Attorneys representing Abrahami, Feldman and Meir did not immediately respond to requests for comment. Gender Male. This time around, Feldman hoped to convert the units into condos designed by Robert A.M. Stern and to sell them for $1.35 billion. Feldman and his wife, Helene, are personally on the hook for many loans tied to HFZs projects. The Manhattan real-estate industry is a game of winners and losers, Feldman says, and even titans lose big sometimes. Zie l received a Bachelor's Degree degree from University of Oxford Queens College and a Law degree from Cardozo Law School. The lender was awaiting an overdue payment on $90 million of mezzanine debt it holds on four prewar Manhattan apartment buildings HFZ is converting to condominiums. According to USIS, Feldman and Meir intermingled the XIs funds with their own in order to hide behind [the] owner and manipulate its assets and liabilities to avoid responsibility for paying the subcontractor. HFZ, however, may be the first big Manhattan developer in the Covid era at risk of losing it all. The lender informed HFZ it was in default. The deal paid off handsomely: In 2014, News Corporation chair Rupert Murdoch paid a whopping $57 million for a triplex penthouse. Larry Hutcher, co-managing partner at Davidoff Hutcher & Citron, who represents Meir in the lawsuit, said its ludicrous for Feldman to say he had no knowledge of what took place inside his own business.. The source told TRD that the complaint contains additional allegations, and that James office had already been investigating HFZ prior to this complaint. 2023 Eisner Advisory Group LLC. Similar Profiles. Meir has been described as aggressive even by New York developer standards. New York, New York, NY, United States, US, View Rather than legitimate business expenses, the suit said Meir spent hundreds of thousands of dollars if not millions on investment-grade wine. The desirable and daring momentum of each successive accomplishment infuses the city with new energy and lifts it to new heights. Investor Stage Seed. Feldman once bragged to, With allegations of intermingling of funds, HFZ might be reluctant to declare bankruptcy. EisnerAmper Real Estate Services Partner, Lisa Knee, interviews HFZ Capital Group Chairman and Founder Ziel Feldman about the origins of HFZ in part 1 of this series. That month, Feldman took over day-to-day management of the development firm. (TCI is not a defendant in the case.). The projects status as a limited liability company, USIS alleged, is a fiction. (The company dropped the suit two days later. HFZ scored a redevelopment loan from Westbrook Partners. But there was one issue: The reference number, according to CIM, was fake. All rights reserved. New York Real Estate Ziel Feldman HFZ Capital Interview Part 2. Firmly established but resolutely pioneering . If your principal lenders have lost confidence or trust in current management, it is not a place where current management wants to take the company and still try to retain control, said Tom Lehman, an attorney with Miami-based LKLSG, speaking broadly about bankruptcy proceedings. Ziel Feldman calls Nir Meir a 'sociopath,' compares XI lender to mobsters. An $89.5 million slice of junior mezzanine debt tied to projects by Ziel Feldman 's HFZ Capital Group will be sold at a public auction on Nov. 12, according to brokerage Newmark Knight Frank . For years, Feldman repeatedly denied allegations that he was backed by controversial diamond magnate Beny Steinmetz. A representative for CIM Group said the company could not respond since it had not received a copy of the complaint, and a spokesperson for Chase declined to comment. By then, 95 of the 215 units were being converted to condos. Working with world-renowned architects, interior designers, national and international brokerages to continually stay abreast of market trends and demographics and psychographics of sought after customers to create value for its portfolio of exceptional properties this astutely comprehensive approach is unparalleled in the industry and affords HFZ acompetitive advantage. Our Personal Tax Guide highlights tax planning ideas that may help you minimize your tax liability. 5 free lookups per month. HFZ Capital Group, founded in 2005 by Ziel Feldman, is one of the largest and most influential real estate firms in New York. But after filing the original complaint, HFZ retained Morrison Cohen litigator David Scharf, an attorney known for representing high-profile real estate clients such as Donald Trump and for crafting legal complaints geared as much toward public relations as to laying out a legal argument. Europe, Menlo Park, China), Where the person is located (e.g. Feldman and his wife, Helene, are personally on the hook for many of the loans tied to these projects. The suit said he transferred $5 million to himself from HFZs bank account between 2017 and 2020. In 2017, HFZ, in partnership with Anthony Tufariello, formerly of Fortress Investment Group, and Randy Reiff, formerly of Cerberus and JP Morgan, launched Allegiant Real Estate Capital. During the upheaval at the firm, Feldmans former business partner, Nir Meir, abruptly departed the firm, and one of HFZs lenders was seeking to oust Meir from his Hamptons home. (HFZ has maintained it has no involvement with Steinmetz or his companies.). EisnerAmper LLP is a licensed independent CPA firm that provides attest services to its clients, and Eisner Advisory Group LLC and its subsidiary entities provide tax and business consulting services to their clients. HFZ is also sparring with Barry Sternlichts Starwood Capital Group, which in October claimed in a lawsuit that the firm owes $157 million on loan payments tied to its Chatsworth project. As it scrambles to stabilize its business, HFZ is desperately trying to stem expenses and cut deals with lenders. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Mitsubishi UFJ to sell SF office building at expected 80% discount, BH scores approval for North Miami Beach apartment tower, Storage Wars: HFZ Capital battles to save tenants stuff from auction, Judge rules against Nir Meir in HFZs $19M default case. As part of the settlement, Moore agreed to pay a $50,000 fine and was banned from selling condos for a period of six months. free lookups / month. Nir Meir and HFZ's Ziel Feldman. Meirs own Hamptons mansion is just five miles down the beach. Read More Ziel Feldman, the founder and chairman of HFZ Capital Group, signed a contract Wednesday to buy the 76,425-square-foot site. EisnerAmper Real Estate Services Group Partner Lisa Knee discusses the recent trend of the developer-turned-lender with HFZ Capital Group Chairman and Founder Ziel Feldman in Part 4 of this series. As aresult, HFZ is presently managing more than $10 billion worth of development, including more than 6million square feet and 2,500 residential units throughout Manhattan. Anybody whos in the middle of developing something particularly condominiums, which is a timing business in the best of circumstances is just caught in that, he said. This was a desperate act by Ziel to salvage his otherwise unsalvageable reputation, said Hutcher. Regions Greater New York Area, East Coast, Northeastern US. He attended Queens College. With an expertise in a broad range of real estate disciplines, including underwriting, analytics, structured finance, investment, development, construction and asset management, HFZ . And with construction stalled, its unclear when buyers will be able to move in. Investor Type Individual/Angel. In November, Feldman listed his penthouse at the Marquand condominium for $39 million. 4 . Last month, the company. There appear to be two possible outcomes for Feldman: Suffer huge losses and take the reputational hit for biting off more than he could chew, or turn things around and emerge as one of real estates great survival stories. HFZ Capital Group Chairman and Founder Ziel Feldman shares his secret to maintaining a healthy work/life balance. He also owns a palatial waterfront home in the Hamptons on Dune Road. Understanding that edifices exist far beyond the moment theyre created, HFZ is equally invested in the past and the future. The complaint names Feldman and his former partner Nir Mier, along with HFZ lenders JPMorgan Chase and CIM Group, according to the source. . Founded in 2005 and based in Manhattan, HFZ Capital Group brings together unblinking foresight, fearless creativity and unwavering financial acumen in world class developments designed to make markets and shape cities. HFZs lender, Chicago-based Monroe Capital, took control of HFZs stake in the portfolio, which spans more than 10 million square feet nationwide. The plan was to convert the buildings 88-90 Lexington, the Astor at 235 West 75th Street and 301 West 53rd Street to condos. HFZ Capital Group is one of the most prolific condominium developers in New York City real estate. This month, HFZ lost a portfolio of 12 last-mile warehouse properties in a UCC foreclosure auction. Many developers saddled with unsold units in a sluggish market are in a tight spot. The legal troubles continue for HFZ Capital Groups Ziel Feldman and its former principal Nir Meir: Another lender has sued the developer and his one time colleague, accusing the pair of fraud and breach of contract. EisnerAmper Real Estate Services Group Partner Lisa Knee asks HFZ Capital Group Chairman and Founder Ziel Feldman about what drives him in Part 7 of this series. All of our staff are trained by the renowned Forbes training guide to provide the ultimate level of luxury, and customer service.Comprised of an executive team that synergizes up-to-the-moment innovation with decades of experience, HFZ Property Management LLC has established itself as an industry bellwether. Meir and Feldman parted ways in December as the HFZs real estate portfolio started unraveling and its properties faced foreclosure. The suit claimed Meir lived well above his means on HFZs dime and seeks $43 million in damages. He said Meir has paid more than $10 million in recent months to satisfy HFZ creditors. But in a lawsuit filed earlier this month, the Feldman accused Meir of stealing $15 million through fraudulent credit card reimbursements and wire transfers. The Movie The Professional is what made Natalie Portman a Lolita. Fanatics mogul Michael Rubin is the mystery buyer of a $50 million Bridgehampton mansion previously owned by HFZ Capital Group founder Ziel Feldman, Page Six can exclusively reveal. The property Feldman unloaded, at 187 Dune Road in Bridgehampton, last sold in 2000 for $4.35 million. HFZ conversions bear astrong signature: vast living spaces with modern amenities set against abackdrop of character and charm. HFZs multifaceted organization functions seamlessly, at the highest levels, across all real estate disciplinesfrom underwriting to analytics, structured finance, investment, development, construction and asset management. Use this guide to identify issues that may impact you, then discuss them with your tax advisor. Law360 (March 24, 2021, 5:15 PM EDT) -- A subsidiary of a Maryland-based real estate investment company is seeking nearly $49 million in damages from HFZ Capital Group, claiming . Depending on how you count, Harry Macklowe and Ian Bruce Eichner are on their third or fourth. With complete vertical integration and ateam with decades of experience in investing and executing on opportunities across the real estate spectrum, HFZ has the ability to act quickly and decisively when evaluating new opportunities.With assessment and mitigation of risk as akey guiding principle in formulating our strategy and business plan, HFZ boasts atrack record demonstrating success in both sourcing and executing on new opportunities throughout each point in amarket cycle.Investment Criteria Investment description: Seeking yields commensurate with opportunistic and value-add investment strategies. Asset classes: Residential, hotel, office, retail, sports and entertainment. Project type: Ground-up development as well as renovation of existing buildings; master planning opportunities. Geography: Focused on all major urban markets throughout the United States (current projects located in New York, Miami, San Francisco, Detroit, Philadelphia, Chicago and New Jersey). Allegiant is acommercial real estate investment management company that originates, acquires and manages first mortgage loans, mezzanine loans, B-notes, preferred equity and CMBS securities. According to an affidavit from HFZs lawsuit against CIM, Feldman said it was Meir who kept him informed about loan modification talks with CIM. Seeking out the most prominent architects of our time, HFZ has pushed parameters in every aspect; setting new standards in the process. HFZ Capital Group. With his signature project slipping from his control, HFZ Capital Groups Ziel Feldman is slinging some mud. HFZ, however, may be the first big Manhattan developer in the Covid era at risk of losing it all. And theres a line of reasoning that with builders everywhere in the same boat, one of the markets biggest players going under would be to no ones benefit. The complaint alleges that Feldman offered the units to investors in projects before filing his offering plan with the AGs office, a source familiar with the matter told The Real Deal. Over their 25+ years in the space, the firm has completed over $500 million in transactions.With several properties in the portfolio featuring additional land and development rights, HFZ will bring its expertise in ground up and restorative development to capitalize on mixed-use development opportunities, including potential development of retail, multifamily, hotel and office uses. In conjunction with the lawsuit, HFZ asked the court for an order of attachment that would effectively put a lien on the Southampton property and prevent Meir from concealing money from the sale. (After publication, a judge sided sided with Meir and did not sign an order of attachment on the property.). Funding Round - Allegiant Real Estate Capital, United States Property Management Companies (Top 10K), Real Estate Companies With Less Than $50M in Revenue (Top 10K), City of New York Companies With More Than 100 Employees, Real Estate Investment Companies With More Than 100 Employees, Property Management Companies With Less Than $500M in Revenue (Top 10K), Property Management Companies With Less Than $1B in Revenue (Top 10K), Real Estate Companies With Less Than $500M in Revenue (Top 10K), East Coast Real Estate Companies (Top 10K), United States Real Estate Companies (Top 10K), Number of portfolio companies associated to the Person, Total number of current Advisors and Board roles the person has, The organization associated to the person's primary job, Where the person is located (e.g. The company has limited options for restructuring. Beleaguered developer HFZ Capital Group and its leader, Ziel Feldman, are on the hook for more than $136 million to the lender on the company's struggling luxury condominium, The XI, a judge has . To its defenders, HFZ is simply a victim of forces outside its control. The venture was seeded with an existing portfolio of properties totaling over 5million square feet and featuring amix of manufacturing, warehouse, distribution, and flex office space as well as significant additional land and development rights. Childrens could have plenty of reasons for wanting another developer. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Miami luxury real estate agent pleads guilty in PPP fraud case, HFZs Ziel Feldman sells Hamptons home for $50M, How HFZ became the face of Manhattans condo woes, Take my condo, please! With allegations of intermingling of funds, HFZ might be reluctant to declare bankruptcy. HFZ and Feldman are appealing. July 09, 2021 03:36 PM. HFZ paid Edison Properties about $870 million for the West Chelsea parcel at 518 West 18th Street in 2014. You are subjecting your financial life to the scrutiny of all sorts of different things, said Andrew Ittleman, an attorney at the Miami-based law firm Fuerst Ittleman David & Joseph who focuses on white-collar crime and money laundering, commenting generally and not about HFZ.