Former soaring billionaire hedge fund manager Phil Falcone seems on the verge of losing his East 67th Street townhouse and Hamptons estate.
Newmark’s Dustin Stolly and Newmark’s Jordan Roeschlaub posted an ad for an upcoming sale of two companies that own real estate on behalf of lender Melody Business Finance and listed an outstanding loan balance of $ 74.2 million.
While the ad doesn’t list Falcone as the owners of the troubled businesses – Croxton 2 LLC and Three-Hundreth Street LLC – he and his wife Lisa Marie Falcone bought the house on East 67th Street on their behalf before they bought it to the GMBH. They are also both listed as guarantors on the Melody mortgage documents.
Interested bidders could attempt to collect the remaining $ 74,251,646 on the loan or simply foreclose the two properties. The sale will be on April 13, according to the marketing materials.
The brokers declined to comment on the foreclosure sale.
Falcone became famous during the 2007-2008 financial crash when he helped his hedge fund Harbinger amass billions of bets on residential real estate – pocketing a payday of $ 1.7 billion.
However, by 2012, he ran into trouble with the Securities and Exchange Commission, resulting in a $ 18 million fine and a multi-year ban, despite admitting no wrongdoing.
Now he owes New York City in taxes of $ 1.8 million, according to public records. And last September, he lamented that he was too short of cash to pay a legal amount of nearly $ 14 million. This emerges from a lawsuit filed against him in the Manhattan Supreme Court that is still winding its way through the court.
Lender Melody has also sued Falcone and his wife Lisa Marie Falcone in the same Manhattan state court for alleging it was owed. The couple pledged art and jewelry, as evidenced by court documents.
In an email, Falcone said the foreclosure sale was in response to his legal battle with Melody “which could eliminate her loan to him.”
The two properties in the center of the foreclosure include a seven bedroom townhouse at 22 E. 67 Street and a Sagaponack property at 142 Crestview Drive.
The Manhattan property is being offered for sale through the Modlin Group for $ 27.5 million. It has 13,300 square meters on six floors plus a lower level with a wine cellar and roof terrace. The couple bought the home in 2004 for $ 10.375 million.
The property on 67th Street, however, is different from the house that Falcone and his wife bought near penthouse magazine publisher Bob Guccione for $ 49 million in 2008 – million for renovations and expansions. The couple sold this home in 2019 for $ 77.1 million at the time.
They bought the Sagaponack property in 2006 for $ 5.5 million and created an impressive 14,000 square feet with eight bedrooms. There’s a marble waterfall wall at the entrance, as well as a 4,600-square-foot rooftop bar and elevator to the lower level, which has demonstration and billiards rooms, a wine cellar, gym, and outdoor pool.