Filopoulos’ Metrovest Equities defaulted on a $9.3 million mortgage in September 2020 for the property at 307 Sixth Avenue, where he had intended to construct a seven-story mixed-use building with 16 condos.
His lender, Castellan Capital, filed for foreclosure as a result. Filopoulos acknowledged that the development site was underwater and agreed not to contest the foreclosure and to transfer ownership to an entity affiliated with his lender.
George Filopolous had planned to hand over the keys to his distressed Greenwich Village development site to his lender, but his plans were disrupted by another party.
On the eve of the auction, another stakeholder, William Rainero, went to bankruptcy court to prevent the sale. Rainero argued that Filopoulos was conspiring to wipe him out by agreeing to hand the property back to Castellan and got the bankruptcy court to stay the sale.
Filopoulos filed for bankruptcy and is now marketing the property for sale through a team at Meridian Investment Sales, led by David Schechtman. Rainero’s attorney stated that his client would enforce their rights in the owner’s bankruptcy case and expects to be paid the $7 million owed to them. Castellan Capital may be paying Filopoulos’ legal fees, insinuated Rainero in court papers, to take over the property.
