High end real estate may be enjoying a rebound in New York, but a new lawsuit has the potential to bring the foreclosure crisis to the city’s most prestigious address, 740 Park Avenue. Developer Kent Swig is, to put it mildly, having a rough go of it. Swig, known for his condo-conversion Midas touch before the real estate crash, is already embroiled in acrimonious divorce court proceedings that has devolved into a nasty feud with his soon-to-be former father-in-law, the real estate bigwig Harry Macklowe. And now, Bank of America is suing Swig as they attempt to collect debts owed on two unpaid loans tied to his 740 Park Avenue co-op.
No payments have been made on the loans (with principal interests of $4.8 and $12.8 million) since 2009. Swig’s estranged wife Elizabeth Macklowe Swig and 740 Park’s impenetrable co-op board are also named in the suit. Per the Swig’s security agreement, the bank is allowed to take possession of the property, making a foreclosure at the Upper East Side society citadel more than a far-fetched hypothetical.