A Common Pleas Court judge Tuesday appointed developer Carl Dranoff receiver for 10 Rittenhouse Square, the mulitmillion-dollar high-rise condo building at 130 S. 18th Street on which senior lender Istar Financial of New York had sought to foreclose.
Judge Albert W. Sheppard Jr. had been seven minutes away from appointing Dranoff receiver on Dec. 30, when Delaware Valley Real Estate Investment Fund - the mezzanine lender that had taken control from developer ARC Wheeler in July - filed for Chapter 11 protection in U.S. Bankruptcy Court for the building, known in the filing as Philadelphia Rittenhouse Developer L.P.
The bankruptcy case was dismissed by Chief Bankruptcy Judge Stephen Raslavich two weeks ago on grounds that the Chapter 11 filing was being used as a tactic in the investment fund's battle with Istar over 10 Rittenhouse.
Bankruptcy Court documents show Istar is owed about $205 million in loans to the 143-unit, 33-story condo building; Delaware Valley Real Estate Investment Fund has a total claim of $62 million.
On Tuesday, discussions took place in the judge's chambers with the aim of reaching a consensual agreement between lawyers from Istar and Delaware Valley Real Estate Investment Fund, which manages the pensions of 47,200 workers in the region, mostly in the building trades.