Developer of 10 Rittenhouse files for Chapter 11
In order to stop 10 Rittenhouse from being placed in receivership by the senior lender, Istar Tara L.L.C. of New York., the developer has filed for Chapter 11 bankruptcy. There are a total of 135 condominiums priced between $600,000 and $15 million at 10 Rittenhouse and only 41 of these units have sold thus far. People who have already bought units in the building will not be affected.
Istar Tara originally had 251 million invested in the project and says it is owed around $200 million. According to John C. Decker, the managing director of Rittenhouse Pension Investors, the amount owed is less than $200 million and since they took over in July they have paid Istar $17 million from sales of units.
The decision to seek Chapter 11 was reached when it seemed as if the Philadelphia Court of Common Pleas was leaning towards receivership. The developers want to avoid receivership because they feel it will reduce the value of the Rittenhouse Square building.
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