Stakes in New York’s Falcone Hamptons head to auction
The Melody entity, a subsidiary of Melody Capital, is undertaking a Uniform Commercial Code foreclosure and on April 13 will publicly auction interests in Falcone properties.
POSTED FEBRUARY 23, 2021 06:08 AM IST
Melody Business Finance LLC is auctioning off interests in the Hamptons estate and the Manhattan townhouse of Philip Falcone, according to a marketing document reviewed by Bloomberg News, a year after suing the former billionaire for default and breach of loan agreements.
Entity Melody, a subsidiary of Melody Capital, is undertaking a Uniform Commercial Code foreclosure and on April 13 will publicly auction interests in Falcone properties at 142 Crestview Drive, Sagaponack and 22 East 67th St. in New York City. . Melody is working with a team from Newmark that includes Dustin Stolly, Jordan Roeschlaub, Daniel Fromm and Brock Cannon on the Guarantee auction.
The eight-bedroom Hamptons property is on sale for an asking price of $ 27.95 million, and the Upper East Side townhouse is listed separately for $ 27.5 million.
“This is an ongoing dispute which I think will be settled,” Falcone said. Melody’s general counsel and a representative for Newmark declined to comment.
Melody sued Falcone last February, accusing him of defaulting on $ 65.8 million in loans and violating the terms of loan agreements by selling two paintings used as collateral, including one by Andy Warhol. .
Falcone, founder of Harbinger Capital Partners LLC, is a former billionaire who amassed his wealth by betting against the US real estate market. Harbinger Capital was once one of the world’s largest hedge funds, managing $ 26 billion at its peak in 2008.
He was barred from the securities industry for at least five years as part of a 2013 settlement. US regulators had accused him of improperly borrowing money from the fund to pay personal taxes and have granted preferential treatment to certain investors. Under the agreement, he did not admit any wrongdoing.