Fortress (FIG) Takes Over $640 Million NYC Condo Development Project

Fortress Investment Group LLC (NYSE: FIG) won the bidding for a $640 million Manhattan condominium conversion project named Sheffield57, taking control from developer Kent Swig after he defaulted on the loans. Actually, Fortress made the only bid for the building at 322 West 57th St. and will invest additional money to finish making the 58-story apartment tower overlooking Central Park into luxury condos. Construction stopped in late 2008 after the contractor wasn’t paid on time.

Swig defaulted on the project’s $400 million first mortgage when it matured in April and on the mezzanine debt when it matured in May, according to Bloomberg.

Guggenheim Structured Real Estate Partners had held the most senior mezzanine loan, as well as an unspecified piece of the first mortgage, before selling to Fortress Investment Group LLC in June, according to Bloomberg. Fortress later paid the $32 million outstanding principal on the mortgage, the person said.

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