Fortress buys NY condo for $20m

Fortress Investment Group has acquired a 50-story condo project in an uncontested foreclosure auction.

Fortress Investment Group has bought a condo development in New York for $20 million, according to the Wall Street Journal.

The firm acquired the 50-story project in a foreclosure auction from developer Kent Swig.

New York’s Fortress moved to foreclose on the midtown scheme after it acquired an $80 million senior piece of mezzanine debt on the property, giving it control of the asset earlier this year.

The Wall Street Journal said Fortress was the only bidder at the auction, held at the law offices of Allen & Overy.

Kent Swig got into difficulties after taking on a $400 million loan in 2006 for the building, called Sheffield57. Credit Suisse was the lender. The developer also borrowed an additional $240 million in mezzanine debt. However the firm was unable to repay the debts when they fell due in April and May.

Adding to problems, sales of condos have also been slow, not helped by the recession. A one bedroom home can cost $1 million.