A Foreclosure at New York’s Fanciest Co-op? Seizure of Swig’s 740 Park Spread Moves Ahead

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The defaulting couple (Patrick McMullen)

Not even the most coveted address or the most celebrated building is immune from the occasional financial contretemps, it would seem, regardless of the building’s all cash financing requirements.

Foreclosure proceedings are moving full-force ahead on the 740 Park Avenue apartment of Kent Swig and estranged wife Elizabeth Macklowe Swig, reports Michael Gross, the author of the consummate book on the consummate building. Bank of America has sued the Swigs and the 740 Corporation, the cooperative that owns the building, seeking to seize the proprietary lease and the associated shares in the co-op for non-payment of a a $17.6 million loan against the apartment. Mr. Gross even posts a link to the lawsuit on his website, if you feel like reading all the dirty details.

It is unclear, in this case, if the issue has to do with a lack of money, something that Mr. Swig, a co-owner of Terra Holdings (which owns Brown Harris Stevens) and Ms. Swig (daughter of developer Howard Macklowe) do not seem to be lacking, or more the result of a separation dispute.

It’s been a rough few weeks for 740 Park, Mr. Gross points out. Alas, even the glitz of the building’s recent record-breaking $52.5 million sale is not quite enough to overshadow such recent controversies.

For the Swigs are not the only residents in the news for something besides the charity fundraiser circuit: Ezra Merkin, the owner of unit 6/7B, just made a $405 million settlement with New York State for steering his hedge fund client’s money to Bernie Madoff’s fund. But at least this will mean one (if not two!) apartments coming to market in the not-too-distant future. And it’s about time, too, with the last publicly-listed apartment at the building entering contract a few weeks ago.

kvelsey@bserver.com