The battle for 3 Columbus Circle will continue in court after Deutsche Bank and Stephen Ross’s Related Cos. rejected a $258.55 million check from SL Green Realty Trust and Joseph Moinian to settle a foreclosure case by yesterday’s 5 p.m. deadline.
Moinian stopped making payments in January on the office building’s loan in the middle of a major renovation and while negotiating a refinancing.
He recently partnered with SL Green to pay off the mortgage, but the loan had been sold by Deutsche Bank to Related, with the bank loaning Ross the money to buy Moinian’s loan.
Litigation over a $54 million prepayment penalty demanded by the lenders will continue while they forego $70,000 in interest each day.
After Moinian defaulted, the bank accelerated the loan payment, but Moinian’s attorney, Stephen Meister, claims under the mortgage language, no prepayment penalty is due if the loan was accelerated.
“I just got the check back,” Meister told The Post. “We will be moving for summary judgment that they are not owed the $54 million prepayment penalty.”
Related will now have to keep paying interest.
