A swanky New York City condo regulators say former Jay Peak owner Ariel Quiros purchased with “ill-gotten gains” from investors — and for a few nights was used by a sitting Vermont governor — has sold for nearly $4 million.
A federal judge this week gave approval for the sale of Quiros’ Fifth Avenue condo, with the proceeds going to investors and other creditors in his Vermont developments who regulators say he looted to buy the condo.
That $4 million sale price is about $1 million less than the condo’s initial listing price, and more than $3 million less than Quiros had tried to sell it for more than a year ago.
Then Gov. Peter Shumlin stayed at the condo belonging to the now disgraced developer for a few days in May 2013 and June 2014, paying Quiros nothing to stay there, VTDigger reported in March.
The condo is part of a luxury 60-story hotel and condo complex, now known as The Residences at 400 Fifth Avenue, in midtown Manhattan, near the Empire State Building.
Hotel rooms rent for as much as $500 a night and apartments run more than $7,000 a month, according to a company website. Monthly condo fees for the Quiros’ unit were listed at $3,905 and taxes are $3,297.
Michael Goldberg, the court-appointed receiver now overseeing the assets at the center of the Jay Peak investor fraud scandal, filed the motion this week seeking a judge’s approval to sell the unit for $3,995,000.
Goldberg could not be reached Wednesday for comment.
The two buyers, according to court records, are King Ting Leung and King Ho Eric Leung of Beijing, China.
Goldberg wrote in his filing that no offers came in for six months while the asking price was $4,950,000. That’s when he lowered the price and soon after the $3.9 million offer came in, he wrote.
“The sale price is $1 million lower than the original listing price due, in part, to the difficulty to obtain conventional financing to fund the purchase,” the receiver added. “Most banks do not provide financing to purchase condominiums located in a condominium hotel. This restriction limits buyers to cash purchasers.”
Federal Judge Darrin P. Gayles, who is presiding over the receivership and the investor fraud case brought by the U.S. Securities and Exchange Commission against Quiros more than two years ago, issued an order this week approving Goldberg’s sale request.
According to court filings, Quiros and his wife bought the condo in December 2011 for $4,149,368, making the purchase with EB-5 immigrant investor money that he helped raise and which was meant to fund massive upgrades at the Jay Peak ski resort.
In total, state and federal regulators say Quiros and Bill Stenger, Jay Peak’s former CEO and president, misused $200 million of the more than $350 million they raised from foreign investors through the EB-5 visa program.
Quiros, according to regulators, siphoned off $55 million for himself through the “Ponzi-like” investor fraud scheme, paying off personal expenses, such as taxes, and buying the New York City condo.
On May 27, 2016, a month after federal and state regulators filed securities charges against Quiros and Stenger, Gayles approved a motion on Quiros’ behalf to take out a $1.5 million mortgage on the condo to pay “reasonable” attorney fees and $15,000 a month in living expenses.
Quiros then listed the condo for $7.2 million, but in September 2016 he “terminated” the listing agreement.
In June 2017, the condo was turned over to Goldberg, the receiver, with the judge ordering that he “undertake his best efforts to market and sell the Condominium.”
According to Goldberg’s filing, the $3.9 million sale price is within the range for “similarly size luxury, high-rise condominiums” in Manhattan.
“Moreover,” the receiver wrote, “the property has been exposed to the marketplace, providing evidence of the actual value of the property based on the response of real-world buyers.”
The condo has been referred to in earlier court filings as Quiros’ Setai condo. But, the receiver wrote, the condo is no longer part of the Setai “brand,” and is currently “branded” as the Residences at 400 Fifth Avenue.
Also, the unit, 39F, is referred to in filings as Unit 39FGH because units F,G and H were combined into one large 2,588-square-foot unit, with a total of four bedrooms and 3.5 bathrooms.
The condo was among the several properties owned by Quiros, including Jay Peak and Burke Mountain ski resorts, that he agreed to turn over to the SEC as part of an $81 million settlement of the investor fraud lawsuit.
As part of the settlement, Quiros admitted no wrongdoing. Proceeds from the sale of those assets are expected to go to reimburse some of the more than 800 investors defrauded as part of the scheme.
The Fifth Avenue condo is for a “lifestyle that embodies luxury, convenience and status,” an online listing reads.
“Wrapped with a series of diamond angled floor-to-ceiling windows, this 39th floor home, with south and west exposures, captures awe-inspiring views of Hudson and East River vistas, bridges and iconic buildings including the Empire State Building, the Flatiron Building and the acclaimed Freedom Tower,” the listing adds.
“Abundant natural light throughout the day followed by stunning evening sunsets and an illuminated night skyline enhance the airy unfettered mood of this architectural gem.”
The unit, according to the listing, is “perfect for lavish entertaining or simply enjoying your morning coffee.”
Read the story on VTDigger here: Quiros’ luxury pad where Shumlin stayed sells for $4 million.