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Mapping Madoff 1 1185 Park Avenue: 3 victims����������������������������A sample of buildings Ponzi scam victims concentrated at posh addresses 2 1060 Park Avenue:���������������������������������������������������������������� 1 victim hit by Madoff’s scam 1100 Park Avenue: 1 victim Park 3 EAST Fre de rick Cath e dral Pkwy Ce ntral Park N E 1 1 0 th St HARLEM BY C. J. HUGHES multiple entries for the same name, mak- Douglass Cir � ��������������������������� �� ������������������������������ Frawle y Cir (El Bario)

ribo ro ugh B rd g 4 1085 Park Avenue: 1 victim T hen a New York federal bankrupt- ing it difficult to tell whether they represent E 1 0 6th St Wards � ����������������������� �� ������������������������� The Island 5 983 Park Avenue: 2 victims Great Park

cy court unveiled the list of vic- one or many victims. For example, unit 2L Hill FDR Dr FDR tims who had been swindled by at 205 East 78th Street, a 20-story Art Deco � ����������������������� �� ������������������������������� 6 205 East 78th Street: 1 victim East Meadow

W v e Ponzi scammer Bernard Madoff, the names co-op, has nine separate entries, yet it like- 97th St T ransv e rse Rd � ����������������������� �� ������������������������������� 7 215 East 68th Street: 5 victims Madison A E 96th St read like a Who’s Who of senators, actors, ly represents only one individual or family 8 220 East 72nd Street: 3 victims � � ����������������������� �� ��������������������������� sports figures and business executives. who lost money in the scam. E 90 th St

v e Indeed, much has been made of the stat- At 215 East 68th Street, a Rudin-owned 9 650 Park Avenue: 4 victims 86th St Transv e rse Rd � � ����������������������������� �� �������������������������� �� v e

Le xington A Central v e Carl

Park A Park � E 86th St 1 st A Schurz ure of some of the 13,567 people and entities rental building with 600 units, five unique 10 900 : 3 victims � Park Great YORKVILLE � ������������������������������ �� ������������������� Lawn UPPER� listed on the 162-page document. surnames are listed in the database. (The EAST 11 Two Sutton Place South: 2 victims SIDE v e � ������������������������������ ������������������������������ E 79th St ork A �� What hasn’t attracted attention here, building is home to former Mayor David Y 79th St T ransv e rse Rd � 12 300 East 56th Street: 6 victims The John however, is the concentration of Manhat- Dinkins.) Ramble Jay Park � ������������������������� �� ��������������������������� tan buildings the New York victims own Meanwhile, a few blocks away at 220 13 45 Sutton Place: 2 victims Strawberry E 72nd St Fields � �� �� �������������������������� �� ������������������������������� �� apartments in — as a primary residence, East 72nd Street, a 196-unit rental owned 14 50 Sutton Place South: 7 victims � Sheep ROOSEVELT Meadow The Mall ISLAND v e � ���������������������������������������� ������������������������������������������

second home or investment property. by Urbana Properties, where a three-bed- 5th A v e LENNOX 15 60 Sutton Place South: 2 victims 65th Stre e t T ransv e rse Rd While a great deal has been written about room was recently listed for $10,650 a 3rd A HILL E 63rd St

Heckscher �� E 62nd St v e Playground

16 781 Fifth Avenue: 2 victims A 2nd E 61 st St

Fdr Dr the Madoff victims selling their homes in month, also has four Madoff victims. E 60 th St s C Queensbo ro B rg Co nn Queensbo ro ir Ce ntral Park S B rd g W 58th St �� �� 17 820 Fifth Avenue: 1 victim A Grand Plz rmy Palm Beach and other parts of Florida, so Just outside the 10021 zip code, at 1185 �������� TURTLE�� BAY far the Madoff-related selling in New York Park Avenue between 92nd and 93rd 18 40 East 88th Street: 3 victims (Midtown East) E 53rd �St � ��

has been done under the radar. But brokers streets, three names are listed. v e

19 360 East 72nd Street: 3 victims FirstA say it is starting to ramp up. The 10022 zip code, Midtown East, THEATER E 48th St DISTRICT MIDTOWN

Source: Federal Bankruptcy Court documents v e As has been reported, the list shows that also appears to have a high concentration ande rbilt A

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v e

Park A E 42nd St Unite d Nations Plz Queens Mid to wn T many of the victims have apartments clus- of Madoff victims, but it may be a false v e

7th A tered on the wealthy , par- hot spot because some of the 404 entries v e nue Of Th e A me ricas ticularly in the 10021 zip code, which runs are offices, not homes. In fact, 885 Third Sutton Place. For instance, at 50 Sutton by Glenwood, four victims are listed. roughly from East 60th to 80th streets, and Avenue, otherwise known as the Lipstick Place South, a 22-story red-brick co-op, By comparison, no other which appeared in 256 entries. Yet there are Building, which housed Madoff’s own of- seven families were swindled, the data in- neighborhood had large concentrations some buildings that stand to suffer more fice, turns up in multiple entries on the dicate. in any buildings. Even along than others. bankruptcy court list. At the nearby Bristol at 300 East 56th West and Central Park South, which are In some cases, individual buildings list Many victims also appear to reside at Street, a 33-story white-brick rental owned Continued on page 96 Brokers vs. developers: battling it out in court Corcoran Sunshine and Five Franklin Place in latest legal standoff over struggling condo

BY GABBY WARSHAWER tate division at the law firm Guzov Ofsink, trending downward at a pace that should he Corcoran Sunshine Marketing said she is currently working on a couple of Five Franklin Place, the sub- have counseled a reduction in the adver- ject of a lawsuit between its Group has filed a lawsuit in New cases between developers developer and brokerage, is tising, marketing and showroom expenses TYork State Supreme Court alleging and brokers, but she declined to name the one of several recent suits. being incurred by defendant … Instead, that the developer of Tribeca’s Five Frank- parties involved. Lawyers expect similar and knowing of the downward trend in the cases to mushroom. lin Place condo owes the brokerage more “From the brokerage point of view, they market, plaintiff actually encouraged de- than $500,000. give a lot of added value to a project,” said fendant to increase, or at least maintain, ����������������������� In the summons addressed to the devel- Scollar. “The other side of the coin is, if the its advertising, marketing and showroom

oper, Corcoran said it terminated its exclu- broker and developer begin arguing, it is �����������������������������������������expenses.”� ���������������������������������������� sive sales agreement with Franklin Place last the developer’s product, and they have the Errol Margolin, a partner at the law firm October, after the developer of the unfinished ultimate say.” Margolin & Pierce and the lawyer repre- condo failed to pay more than $100,000 in Lawsuits are, of course, plentiful during senting Corcoran Sunshine, disputed the marketing expenses. Corcoran argued that downturns. In the early 1990s, there was developer’s claim. based on its initial agreement with the devel- also an increase in real estate litigation, said “Their counterclaim is baseless,” Margo- oper, it was entitled to a $500,000 termina- Scott Mollen, a partner at the firm Herrick lin told The Real Deal. “Franklin Place con- tion fee if it ended its sales agreement with Feinstein. sistently ran a big balance [that] they only Franklin Place. “There was an uptick in litigation be- paid part of, and they were in such breach The lawsuit between Corcoran and tween everybody,” said Mollen. “Lenders of their agreement that Corcoran had to ter- Franklin Place LLC, which was filed in and sponsors, sponsors and brokers, pur- minate their association with them.” late January but is being reported for the chasers and sponsors, sponsors and the at- Five Franklin may be facing other trou- first time by The Real Deal, is one of sev- torney general, and between purchasers bles as well. In December, the real estate eral recent suits between brokerages and and brokers.” Web site Curbed reported that the project developers. Real estate lawyers and bro- As for Five Franklin, the developer is was in default on its acquisition loan and is kers say they expect brokerage-develop- not taking Corcoran Sunshine’s allega- the developer a minimum of $8 million for currently being marketed for sale. er litigation to mushroom as the market tions lying down. Last month Franklin damages, plus costs and fees. Representatives from Corcoran; Frank- continues to trend downward and devel- Place LLC’s attorney answered the sum- It says the Corcoran Sunshine Market- lin Place LLC’s principal, Leo Tsimmer; and opers find themselves with less money for mons from Corcoran, denying nearly all of ing Group “failed to apprise defendant Tsimmer’s lawyer in the suit, Jeffrey Dan- marketing expenses while condo plans the brokerage’s allegations. The counter- during 2008 that the market for residen- nenberg, did not return calls for comment are scaled back. claim, which was also filed in state Supreme tial condominiums in New York City, such on the litigation. Allison Scollar, who heads up the real es- Court, alleges that Corcoran Sunshine owes as those contemplated for the Project, was Continued on page 88

18 April 2009 www.TheRealDeal.com www.TheRealDeal.com May 2007 00