Initial Promise
In 2013, Michael Stern, in partnership with Property Markets Group, embarked on an ambitious project at 111 West 57th Street, dubbed Steinway Tower. This 84-story, 1,428-foot skyscraper, with a width of just 60 feet, aimed to redefine luxury on Manhattan’s Billionaires’ Row. The plan integrated the historic 1920s Steinway Hall with a new, ultra-slim tower offering full-floor residences priced above $50 million, boasting Central Park views and exclusive amenities like a private porte-cochère and a residents-only concert hall. Marketed as a transformative addition to the Midtown skyline, the project attracted significant investment, including from AmBase Corporation, which acquired a 59% stake for approximately $70 million. With a projected sellout exceeding $1 billion, groundbreaking commenced in 2015, positioning Stern as a bold innovator in Manhattan’s real estate landscape.
Challenges and Controversies
The project’s trajectory was disrupted by significant financial and legal challenges. By 2016, construction delays and escalating costs strained the venture. AmBase filed a lawsuit alleging that Stern and co-developer Kevin Maloney had orchestrated a scheme to dilute its stake through unauthorized financing, including a high-interest mezzanine loan. This led to a 2017 foreclosure by a junior lender, erasing AmBase’s investment. AmBase’s claims, which included racketeering allegations, were dismissed in 2018, but the litigation cast a shadow over Stern’s reputation.
Additional disputes emerged with the project’s initial sales team, Corcoran Sunshine, which sued in 2018, claiming that internal conflicts and lawsuits hindered their marketing efforts. They accused the developers of halting sales and dismissing staff without cause, contributing to slow unit sales during a softening market. The developers countered by switching brokerages and attributing delays to Corcoran’s performance. Reports also surfaced of contractor disputes and budget overruns, with costs reportedly climbing from $800 million to nearly $1 billion due to engineering complexities.
Completed in 2021, four years behind schedule, Steinway Tower faced a diminished luxury market, with fewer buyers for its high-priced units and a reliance on marketing incentives to boost sales. While the tower stands as an architectural achievement, it incurred significant investor losses, with some stakeholders, including a small Connecticut firm, facing severe financial setbacks. Steinway Tower serves as a striking reminder of how ambitious developments can falter amid financial disputes, legal battles, and market shifts.
We hope that interested parties will send us any available information and documents exposing Stern’s fraudulent activities.