- Isaac Hager Facing Lawsuit [✜]
The Real Deal reports that the developer of 421-431 Kent Avenue (the former Domsey parking lot) is being sued over a mortgage deal that went bad. N. Richard Kalikow is alleges that the developer, Isaac Hager, used the personal guarantee of his terminally-ill business partner to secure a $17 million second mortgage from Kalikow. The deal went through in October 2007, and Hager defaulted on the loan in August 2008. The business partner, Chaim Lax, died in November of 2008. There is also an allegation of misappropriation of funds regarding $100,000 that was set aside to hire a consultant to secure 421-a tax abatements for the project.
Hager (who also developed 20 Bayard and the Aurora) and Lax acquired the Kent Avenue site in December 2007 for $42.6 million.