2023 Personal Tax Guide. In two court cases, the company persuaded judges to seal documents, claiming they contained sensitive business information. EisnerAmper is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC provide professional services. After Barnett split from the group to focus on his own firm, Extell Development, and Maloney started to shift his attention to South Florida, Feldman and Meir broke off to launch HFZ in 2005. HFZ and Feldman are appealing. The expert could not determine whether Feldmans signatures were forged. Mr. Feldman, 54, is the founder and managing partner of the HFZ Capital Group, a real estate development and investment company that he formed in 2005 . With 20 million square feet owned and developed, 2500 residential units brought to market and over 100 city-shaping projects in New York and beyond, HFZ defines and defies the design dictates and fiscal metrics of the luxury real estate market and has done so consistently over the past decade. Its investors and lenders have sued to collect more than $300 million, liens from contractors and vendors are piling up, and at the firms flagship project the Bjarke Ingelsdesigned XI condo and hotel spanning a full city block along the High Line sales are slow and construction has stalled. Three of the most prolific condo developers in New York got their start together at Property Markets Group, which Feldman, a Queens-born former real estate lawyer, co-founded with banker Kevin Maloney in 1991. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, L&L, Mitsubishi default on Plaza District office tower, NY Attorney General reviewing HFZ fraud complaint. 252 likes, 8 comments - The Real Deal (@therealdeal) on Instagram on November 19, 2020: "Ziel Feldman has listed his Upper East Side penthouse for $39 million, as the embattled developer." The Real Deal on Instagram: "Ziel Feldman has listed his Upper East Side penthouse for $39 million, as the embattled developer faces pressure from lenders . All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Mitsubishi UFJ to sell SF office building at expected 80% discount, BH scores approval for North Miami Beach apartment tower, Storage Wars: HFZ Capital battles to save tenants stuff from auction, Judge rules against Nir Meir in HFZs $19M default case. Rubin, a billionaire co-owner of the Philadelphia 76ers, has . I think theres a lot of other distress going on that people are working on quietly, behind the scenes.. HFZs multifaceted organization functions seamlessly, at the highest levels, across all real estate disciplinesfrom underwriting to analytics, structured finance, investment, development, construction and asset management. (TCI is not a defendant in the case.). There appear to be two possible outcomes for Feldman: Suffer huge losses and take the reputational hit for biting off more than he could chew, or turn things around and emerge as one of real estates great survival stories. No credit card required. LinkedIn View on LinkedIn. Meir, a former intern at now-defunct residential brokerage Prudential/MLBKaye, worked with them at PMG. Ziel Feldman is the Chairman and Founder of HFZ Capital Group, a Manhattan-based real estate investment and development company formed in 2005. The suit claimed Meir lived well above his means on HFZs dime and seeks $43 million in damages. Fanatics mogul Michael Rubin is the mystery buyer of a $50 million Bridgehampton mansion previously owned by HFZ Capital Group founder Ziel Feldman, Page Six can exclusively reveal. This month, HFZ lost a portfolio of 12 last-mile warehouse properties in a UCC foreclosure auction. Nir Meir and HFZ's Ziel Feldman. Update: This story was updated to include more details on the Southhampton property, and the judges ruling on HFZs request for an order of attachment tied to the propertys sale. The complaint names Feldman and his former partner Nir Mier, along with HFZ lenders JPMorgan Chase and CIM Group, according to the source. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Miami luxury real estate agent pleads guilty in PPP fraud case, HFZs Ziel Feldman sells Hamptons home for $50M, How HFZ became the face of Manhattans condo woes, Take my condo, please! The plan was to convert the buildings 88-90 Lexington, the Astor at 235 West 75th Street and 301 West 53rd Street to condos. Soon after, the partners landed a $300 million refinancing from Wells Fargo. One investor, New York-based Arel Capital, recently filed a lawsuit alleging that JPMorgan, a lender on HFZs XI development, pressured the developer to divert money from its conversion projects to the struggling West Chelsea project. HFZ originally filed a tamely worded complaint against Meir in April, accusing the former executive of defrauding the development firm and hoarding fringe benefits including a pricey Hamptons home. Get contact details including emails and phone numbers Asuccessful value-generating development goes way beyond the edifice. HFZ Capital Group Chairman and Founder Ziel Feldman sat down with EisnerAmper Real Estate Services Group Partner Lisa Knee to discuss the origins of HFZ, one of the most prolific condominium developers in New York City. But over the past year or so, HFZs business has crumbled. Investor Type Individual/Angel. Use this guide to identify issues that may impact you, then discuss them with your tax advisor. Sign up for a free account. With his signature project slipping from his control, HFZ Capital Group's Ziel Feldman is slinging some mud. Moreover, the Brazilian mining giant Vale alleges that Israeli diamond magnate Beny Steinmetz illegally stashed money in 13 HFZ projects. . Douglas Elliman, which handles sales at the project, has tried, unsuccessfully, to sell units in bulk at a discount. But in a lawsuit filed earlier this month, the Feldman accused Meir of stealing $15 million through fraudulent credit card reimbursements and wire transfers. ), The project was recently embroiled in a mob scandal in which members of the Gambino crime family allegedly bought off an HFZ executive so they could skim hundreds of thousands of dollars from it and other Manhattan projects. Among the major assets in the portfolio are two noteworthy campuses based in Wisconsin: The former 1,700,000square foot Heinz Kraft-owned Oscar Mayer plant, located in the heart of Madison and an 800,000square foot campus in Milwaukee formerly occupied by Caterpillar Global Mining, LLC. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Former Westchester home of KKR co-founder list for $11M, The texts are now evidence in a legal battle as HFZ the prolific developer Meir launched 15 years ago with co-founder and chair Ziel Feldman fights CIMs efforts to foreclose on the debt. Neither Ziel or Helene Feldman immediately responded to requests for comment. July 09, 2021 03:36 PM. Hamptons Hot . During the upheaval at the firm, Feldmans former business partner, Nir Meir, abruptly departed the firm, and one of HFZs lenders was seeking to oust Meir from his Hamptons home. But in an affidavit filed Wednesday, lawyers for Meir opposed the request. Rubin dropped out of Villanova University and started GSI Commerce, which he sold to eBay in 2011 for $2.4 billion, but kept sports merchandise company Fanatics as well as Rue Gilt Groupe and ShopRunner in the deal, according to Forbes, which estimates his net worth at $3.5 billion. According to an affidavit from HFZs lawsuit against CIM, Feldman said it was Meir who kept him informed about loan modification talks with CIM. With an expertise in a broad range of real estate disciplines, including underwriting, analytics, structured finance, investment, development, construction and asset management, HFZ capitalizes on development and investment opportunities both in the U.S. and abroad and Find contact details for 700 million professionals. Still, HFZs acquisition, for an astonishing $1,100 per square foot, immediately drew skeptics. With his signature project slipping from his control, HFZ Capital Group's Ziel Feldman is slinging some mud. HFZ Capital Group. HFZ, however, may be the first big Manhattan developer in the Covid era at risk of losing it all. The Bryant is David Chipperfields first ground up residential building in the United States, Thomas Juul-Hansens work at 505 West 19th Street carries this same distinction. The project currently has a number of challenges and needs to be recapitalized and restructured, an HFZ spokesperson said. He also allegedly forged documents in order to take ownership of a $45 million estate in Southampton that HFZ claims it owns. As part of this initiative, HFZ focuses on businesses that work synergistically with the HFZ platform and that provide opportunities for expansion of the respective brands. HFZ has tried to keep a lid on certain information getting out. The Real Deal was sent the complaint earlier this week by HFZs new spokesperson, Stu Loeser, who represented Michael Bloomberg for six of his 12 years as mayor. The sale of Feldmans manse comes as his firm grapples with lawsuits alleging unpaid bills and defaulted loans at its condo projects. An entity tied to Monroe sued in December, alleging it held title to the property but Meir was blocking it from taking possession. The Manhattan real-estate industry is a game of winners and losers, Feldman says, and even titans lose big sometimes. New York states Attorney General has received a complaint accusing HFZ Capital Groups Ziel Feldman of illegally offering apartments for sale a violation that, if proven, could get him a lifetime ban on selling condos and co-ops in New York. HFZ pledged the equity interest in those buildings located in New York, Tennessee and Wisconsin to both Abrahami and Chicago-based Monroe Capital, according to the complaint. Invited to place bids You may not become a millionaire, but there is a lot to learn from George Soros. HFZ declined to comment on those allegations. He had been part of an investment group that had paid just $15 million for the property in 1994. In 2017, HFZ, in partnership with Anthony Tufariello, formerly of Fortress Investment Group, and Randy Reiff, formerly of Cerberus and JP Morgan, launched Allegiant Real Estate Capital. The complaint comes after TCI scheduled a foreclosure auction to take control of HFZs ownership stake in the XI, a mixed-use development on the High Line. UPDATED, April 15, 2021, 8:24 p.m.: HFZ Capital Groups Ziel Feldman says his former partner Nir Meir used their development firms bank account as a personal piggy-bank to bankroll his lavish lifestyle. In the complaint, Abahramis lawyers accuse Feldman and Meir of fraud and intentional misrepresentation in connection with the loan. The embattled developer amended a complaint in a lawsuit he filed earlier this year against former HFZ executive Nir Meir. Before HFZ an acronym for Helene, Feldman and Ziel there was PMG. The original developers, Marc Jacobs and Ira Shapiro, were buried by debt and lawsuits, and HFZ and its partners inherited a nearly complete but stalled tower. Ziel Feldman is a Chairman and Founder at HFZ Capital Group based in New York, New York. The embattled developer amended a complaint in a lawsuit he filed earlier this year against former HFZ . The deal paid off handsomely: In 2014, News Corporation chair Rupert Murdoch paid a whopping $57 million for a triplex penthouse. By then, 95 of the 215 units were being converted to condos. As principled as it is prolific, HFZ is equally committed to restoring and preserving historic buildings and to partnering with the worlds most visionary architects to create the edifices that epitomize next generation living. HFZ brings its operational resources as well as its relationships and expertise in the capital markets in order to grow together with its partner companies. It takes a lot of drive and determination to be a real estate developer. Attorneys representing Abrahami, Feldman and Meir did not immediately respond to requests for comment. This is not the first time that Feldman has painted Meir as the main culprit for HFZs mounting financial woes. (, We had a little tiny office with no heat and Home Depot card tables for desks,, HFZ had purchased the four-building parcel, totaling nearly 750 rental units, from Westbrook Partners in 2013 for $610 million. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Office tenants shift search to East Bay suburban markets, Real estate lender dodges bullet after Signatures collapse, Miami luxury real estate agent pleads guilty in PPP fraud case. The firm has approximately 15 million square feet under ownership and . San Francisco Bay Area, Silicon Valley), This describes the type of investor the person is (e.g. UPDATE, DEC. 10, 8:30 P.M. All of our staff are trained by the renowned Forbes training guide to provide the ultimate level of luxury, and customer service.Comprised of an executive team that synergizes up-to-the-moment innovation with decades of experience, HFZ Property Management LLC has established itself as an industry bellwether. At HFZ, Feldman and Meir had a good cop/bad cop dynamic, according to multiple people who know them. After two decades without a ratingsystem in Israel, at the end of 2012 an international tender for hotel ratingwas published. This was a desperate act by Ziel to salvage his otherwise unsalvageable reputation, said Hutcher. A spokesperson for Meir said at the time he remained a vested partner in the firm, which he co-founded with Feldman in 2005. Facing foreclosure on his signature project, the developer lashes out. Last month, the company did a round of layoffs, with many of the cuts happening on the construction team and in the corporate office. Its just unfortunate that [Feldman] got caught in this perfect storm of the pandemic and being very long on condominium development., I wouldnt bet against Ziel, Schrager added. The property Feldman unloaded, at 187 Dune Road in Bridgehampton, last sold in 2000 for $4.35 million. Feldman, chief executive of HFZ Capital, one of the city's swankiest developers . Feldman dismissed them. The Martin Act, meanwhile, gives the New York Attorney General broad powers to investigate fraud. Similar Profiles. And with construction stalled, its unclear when buyers will be able to move in. HFZ has also been accused of intermingling funds at the XI. In 2018, HFZ Capital Group partnered with Reich Brothers to form HFZ-Reich, astrategic venture to build aportfolio of industrial properties located throughout the US. Still, word spread that deals were slow. Monroes suit was discontinued in March. Meir was a managing principal at HFZ until December. And theres a line of reasoning that with builders everywhere in the same boat, one of the markets biggest players going under would be to no ones benefit. HFZs management company operates with the highest standards and aresident first philosophy, in order to provide residents with apeerless end to end experience. Since inception, Allegiant originated over $1.5 billion of loans on behalf of an institutional investor. HFZ Capital Group Chairman and Founder Ziel Feldman sat down with EisnerAmper Real Estate Services Group Partner Lisa Knee to discuss the origins of HFZ, one of the most prolific condominium developers in New York City. It compares Meir to Bernie Madoff, disgraced attorney Marc Dreier and convicted former health care executive Richard Scrushy. 1 propertymg.com; 3 917609XXXX; 201816XXXX; 212610XXXX; View Similar Profiles. EisnerAmper Real Estate Services Group Partner Lisa Knee interviews HFZ Capital Group Chairman and Founder Ziel Feldman, who looks back on his first property, in Part 5 of this series. But there was one issue: The reference number, according to CIM, was fake. Ziel Feldman is the Founder and Principal of HFZ Capital Group. Contact Miriam Hall at miriam.hall@bisnow.com Related Topics: Ziel Feldman , HFZ Capital . Our Personal Tax Guide highlights tax planning ideas that may help you minimize your tax liability. What we believe we got is something thats extraordinarily well priced for the total package, he said in an interview with The Real Deal in 2015. Nir Meir and HFZ's Ziel Feldman. No credit card required. In October, Feldman sold his 22-room, chateau-style mansion in Englewood, New Jersey, after nine years on the market. Former HFZ principal accused of siphoning $15M from developer, HFZ founder Ziel Feldman and Nir Meir (iStock, HFZ/Illustration by Kevin Rebong for The Real Deal). The company has limited options for restructuring. Feldman and his wife, Helene, are personally on the hook for many loans tied to HFZs projects. The plan was to convert the buildings 88-90 Lexington, the Astor at 235 West 75th Street and 301 West 53rd Street to condos. Ziel Feldman is committed to positively evolving the . I think people have short memories on this stuff, said Kearns. The amended complaint increases the damages HFZ is seeking from Meir from a piddling $43 million to an attention-grabbing $688 million, based mostly on the new claim that Meir lied to HFZ about the XI being on sound footing, causing more than $600 million in damage. Bankruptcy could also force Feldman to relinquish control of the company. More recently, the Six Senses Hotel at The Eleventh will be this notable hospitality groups first project in the United States. A 2014 fire led to arson charges against the former broker, David Osiecki. As aresult, HFZ is presently managing more than $10 billion worth of development, including more than 6million square feet and 2,500 residential units throughout Manhattan. Running out of time.. With allegations of intermingling of funds, HFZ might be reluctant to declare bankruptcy. (HFZ has maintained it has no involvement with Steinmetz or his companies.). Up to 5 Rather than legitimate business expenses, the suit said Meir spent hundreds of thousands of dollars if not millions on investment-grade wine. By Rich Bockmann. (The lender would need to file a foreclosure action or get HFZ to agree to work with another developer, according to a lawyer with experience in this area.) The legal troubles continue for HFZ Capital Group's Ziel Feldman and its former principal Nir Meir: Another lender has sued the developer and his one time colleague, accusing the pair of fraud . HFZ is also sparring with Barry Sternlichts Starwood Capital Group, which in October claimed in a lawsuit that the firm owes $157 million on loan payments tied to its Chatsworth project. Eisner Advisory Group LLC and its subsidiary entities are not licensed CPA firms. With an expertise in a broad range of real estate disciplines, including underwriting, analytics, structured finance, investment, development, construction and asset management, HFZ . Ziel has 1 job listed on their profile. ), HFZs spokesperson said the firm would address legal challenges in court filings through its able legal counsel, not in the press., With Meir out, it will likely be Feldman leading the discussions with contractors and lenders. Feldman spent more of his time on high-level talks and deals and was removed from the nitty-gritty aspects of development. As adeveloper and adesign connoisseur with apersonal and professional connection to New York, Ziel Feldman is committed to positively evolving the culture of the city for posterity. The desirable and daring momentum of each successive accomplishment infuses the city with new energy and lifts it to new heights. With creativity and profitability working in tandem, neighborhoods form where there were none, forsaken landmarks regain their lost luster and aesthetically arresting towers rise to halo the worlds greatest city as one whose sights are firmly fixed on aradiant future. Anybody whos in the middle of developing something particularly condominiums, which is a timing business in the best of circumstances is just caught in that, he said. Online retail mogul closed off-market deal late last year, Michael Rubin, HFZ Capital Groups Ziel Feldman and 187 Dune Road in Bridgehampton (Photos via Getty; Google Maps). The Movie The Professional is what made Natalie Portman a Lolita. A successful value-generating development goes way beyond the edifice. The developer has been slammed by foreclosures and lawsuits from lenders, including CIM Group, which seized control of four condo projects last month. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Former Westchester home of KKR co-founder list for $11M, HFZ loses control of 4 Manhattan condo projects, HFZ's Ziel Feldman takes reins, partner Nir Meir is out: sources. EisnerAmper Real Estate Services Group Partner Lisa Knee discusses the recent trend of the developer-turned-lender with HFZ Capital Group Chairman and Founder . HFZ Capital Group is one of the most prolific condominium developers in New York City real estate. Many developers saddled with unsold units in a sluggish market are in a tight spot. To its defenders, HFZ is simply a victim of forces outside its control. Starwood Property Trust is suing Ziel Feldman's HFZ Capital Group for $157 million. EisnerAmper Real Estate Services Group Partner Lisa Knee discusses the recent trend of the developer-turned-lender with HFZ Capital Group Chairman and Founder Ziel Feldman in Part 4 of this series. Zie l received a Bachelor's Degree degree from University of Oxford Queens College and a Law degree from Cardozo Law School. Ziel Feldman is Chairman/Founder at Hfz Capital Group. The legal troubles continue for HFZ Capital Groups Ziel Feldman and its former principal Nir Meir: Another lender has sued the developer and his one time colleague, accusing the pair of fraud and breach of contract. EisnerAmper is the brand name under which EisnerAmper LLP and Eisner Advisory Group LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. Moreover, the Brazilian mining giant Vale alleges that Israeli diamond magnate, As it scrambles to stabilize its business, HFZ is desperately trying to stem expenses and cut deals with lenders. Ziel Feldman Owner. Construction should be buzzing at the XI, the pair of dancing towers in West Chelsea where HFZ hopes to sell more than $2 billion worth of condos. HFZ accused Meir of stealing $15 million via fraudulent credit card reimbursements and wire transfers, in a lawsuit filed April 6 in Suffolk County. When the wolves came to Ziel Feldman's door, it was a triplex penthouse on the Upper East Side of Manhattan. Meirs attorney described the allegations as a desperate, last-ditch attempt to pressure Meir and said the claims were without merit. Beleaguered developer HFZ Capital Group and its leader, Ziel Feldman, are on the hook for more than $136 million to the lender on the company's struggling luxury condominium, The XI, a judge has . Wix.com CEO alleges double-dealing in lawsuit, Avishai Abrahami with Ziel Feldman and Nir Meir, and 500 Bailey Ave, Buffalo, NY; 707 Spence Lane, Nashville, TN; 1100 Milwaukee Avenue, South Milwaukee, WI (Getty, Google Maps, NY Supreme Court/Illustration by Alexis Manrodt for The Real Deal).