Cuomo Orders Condo Buyers Out of Contracts

NEW YORK CITY-Citing unnamed sources, Crain’s New York Business reported Friday afternoon that state Attorney General Andrew Cumo had ordered Extell Development to release 41 buyers from their contracts to buy apartments at the Rushmore development on Manhattan’s Upper West Side. Cuomo ruled that the developer failed to meet the projected closing date in the offering plan, which said it would offer refunds if the project was delayed.

According to Crain’s, at least 41 buyers filed complaints with Cuomo’s office because Extell missed the September 2008 deadline to start apartment closings. Richard Cohen, an attorney representing 33 of the buyers, told Crain’s that Extell will owe his clients about $13.5 million in down payments and will lose approximately $95 million in apartment sales. Pricing at the Rushmore, located at 80 Riverside Blvd., begins at $1.5 million for a one-bedroom condominium unit, according to Extell’s website.

Gary Barnett, president of Extell, told Crain’s he hasn’t decided whether to appeal Cumo’s ruling. “We are very confident we will be able to resell the units,” he said.