The lending arm of JMB Capital Partners has emerged as the lead bidder to take over a retail leasehold for the George Washington Bridge Bus Station in northern Manhattan, offering $43.5 million to acquire the lease from its bankrupt developers, WSJ Pro Bankruptcy reported. JMB Capital Partners Lending LLC stepped in after the previous lead bidder, Monarch Alternative Capital LP, hit an impasse in negotiations with the Port Authority of New York and New Jersey over closing conditions related to the lease, according to court papers filed on Monday in the U.S. Bankruptcy Court in Manhattan. The offer is a stalking-horse bid that puts a floor on the leasehold’s price, subject to better offers. JMB is offering a mix of cash as well as loan forgiveness, according to court documents. At least $17 million will be put in escrow to cure any defaults to the ground lease; the offer includes a closing payment of up to $8.5 million in cash. JMB would also forgive amounts owed under a bankruptcy loan the investment firm provided to development consortium George Washington Bridge Bus Station Development Venture LLC to fund its bankruptcy case, according to court papers. The development consortium sought chapter 11 protection in October 2019, facing cost overruns in its overhaul of the bus station and a dispute with contractor Tutor Perini Corp. The bankruptcy case has lasted longer than anticipated because of the COVID-19 pandemic, requiring the consortium take out an $18 million credit line after seeking court protection.
