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Chemical seeks to foreclose.

Peter Kalikow's City and Suburban York Avenue Estate residential development, the center of much controversy since 1984, is now in the midst of a foreclosure proceeding.

Chemical Bank last week sought permission in court to foreclose on 10 of the landmark buildings on which it holds three mortgages totalling $40 million.

The bank also notified tenants of the 10 properties to not pay the rent to Kalikow, but to wait until a receiver was appointed.

Kalikow purchased the 14-building complex in 1984 and announced plans to tear it down to make way for four new residential towers. The announcement touched off a fight with preservationists and tenants that wanted to save the turn-of-the-century buildings which are considered the first humane tenements.

In 1990, Kalikow's plan was dealt a blow when the complex was landmarked. The developer, however, succeeded in getting the now-defunct Board of Estimate to remove landmark status from four of the buildings paving the way for Kalikow to build a smaller project. That victory was overturned by an appeals court last month. Chase Manhattan Bank holds the mortgages on those four buildings and they are not involved in the foreclosure proceeding.

Kalikow filed for personal bankruptcy last August but the company that owns the City and Suburban Buildings is not in bankruptcy.

The developer and publisher of the New York Post has not yet surrendered the properties, according to Martin McLaughlin, Kalikow spokesperson.

The 14-building complex is located between 78th and 79th Streets, York Avenue and the East River Drive.
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Title Annotation:Chemical Bank to foreclose on City and Suburban York Avenue Estate residential development located in New York, New York, owned by Peter Kalikow
Publication:Real Estate Weekly
Date:Jul 8, 1992
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