Sharif El-Gamal’s 45 Park Place condo tower remains the eyesore of Tribeca.
The upper floors of the 43-story tower that was supposed to be El-Gamal’s crown jewel instead show exposed concrete while a crane stands idle nearby. Construction ground to a halt in 2019 and El-Gamal and his lenders became locked in legal limbo.
Lender Malayan Bank Berhad initiated a foreclosure on the property in 2020, but a judge denied summary judgment, allowing El-Gamal to keep fighting — and the project to remain stalled. In 2022, an affiliate of Michael Dell’s MSD Partners acquired the $174 million loan backing the project, hoping his high-octane firm, known for complex deals, would be the one to seize control of the tower.
Three years later, MSD is still at a standstill. El-Gamal has successfully managed to dodge foreclosures, but the litigation could start ramping up.
Contractors and lenders are now making new allegations in lawsuits, some of which take direct aim at the role of the property’s receiver, Scott Mullen, who was appointed in 2020 to preserve the condo project. A receiver typically must approve any significant contract or deal related to the property. A deal that is reached without the receiver’s blessing could be a major violation of a court order.
In one recent lawsuit, a subcontractor alleges the project’s lenders and developer have refused to allow his firm to remove its 42-story hoist and related construction equipment. Six years since the project stalled, S&E Bridge & Scaffold claims it has been unable to reclaim its hoist from the property.
S&E Bridge & Scaffold filed the lawsuit against the receiver, lenders and development group seeking over $2 million in unpaid bills, asking the receiver to return his equipment.
Another suit zeroes in even more on the role of the receiver.
MSD, in its foreclosure lawsuit, alleges an agreement reached between the developer and two contractors is invalid because the receiver had not yet approved it. The purported agreement related to the release of legal claims for over 2,500 curtain walls stored both on-site and off-site.
MSD claims only the property’s receiver can enter into these agreements because of the receivership order from the court. (Permasteelisa North America Corp, one of the two contractors involved, claims the lender’s position is incorrect in a filing.)
Another sign the legal drama could heighten: MSD recently replaced its legal counsel with Oved & Oved.
The firm, led by brothers Terrence and Darren Oved, stepped in last year to represent condo owners at the ultra-luxury tower 432 Park Avenue in their lawsuit against CIM Group and Macklowe Properties, unleashing a bevy of new allegations and accusing the developers of “deliberate and far-reaching fraud” for concealing condo defects.
The Oveds often come in the middle of contentious real estate feuds that involve sharp-elbowed dealmakers, such as their representation of the Gindi family in their battle against Ben Ashkenazy.
“This litigation has persisted far too long. It’s time for it to end,” said Terrence and Darren Oved in a statement. “We are committed to delivering to our client the decisive and definitive victory they rightfully deserve.”
An attorney for El-Gamal did not return a request to comment.
Construction on the Michel Abboud-designed tower’s glass curtain wall is only about two-thirds completed. El-Gamal used a complex debt package in compliance with Islamic law to finance the project, complicating the foreclosure process.
The tower has a projected sellout of nearly $450 million, according to the condo offering plan filed with the state Attorney General’s office.
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