HFZ church project foreclosure sabotaged $61M investment, suit charges

Foreign shareholders in a beleaguered HFZ-led office project are going after its lender, Vanbarton Group, claiming the firm conducted a foreclosure sale that robbed them of their $61 million investment, according to a recent Manhattan Supreme Court lawsuit.

Vanbarton and HFZ’s partner on the 34-story Kips Bay office tower, the Marble Collegiate Church, intentionally sabotaged the foreclosure sale to deter others from bidding on the debt and allow Vanbarton to take control of the $350 million property for just $85 million, the investors claim in court papers.

The project came out of the EB-5 program which allows foreigners to invest in developments that create at least 10 jobs

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