Posts (RSS)New York Mansions to Be Sold in Foreclosed Homes Auction
Two mansions in Western New York will be sold in a foreclosed homes auction by John A. Russo, heir to the Sorrento Cheese Co. fortune, after the buyer failed to pay the first scheduled $1 million payment due last May 1.
The mansions, which are located along Boston State Road in Hamburg, will be auctioned off separately on September 1 at the foreclosure alcove of the Erie County Courthouse.
Michael Wilson, a young Cleveland-based hedge fund manager and financier who manages New Frontier Trust, purchased the two mansions last October through a firm named Phantom One Holdings LLC. He paid $3.3 million for 6553 Boston State Road and $3 million for 6523 Boston State Road.
Real estate professionals who came to know of the purchases were stunned because the prices were the highest price levels ever paid for mansions in the Western New York area.
To pay for the mansions, Wilson and his firm Phantom One Holdings LLC gave Russo $2 million in cash and then signed to pay $4.3 million over a period of time to cover the balance.
Russo provided two home loans to Wilson, one for $1.8 million and the other for $2 million. Wilson was scheduled to pay $1 million on May 1 and make the other payments every 6 months.
But Wilson failed to make his first payment, so Russo and his firm Greenacres filed a foreclosure case last June 16 to get back the mansions.
There are also mechanics liens against the two mansions from Nest Interiors Commercial Residential LLC which provided interior design services for both houses. The filings indicated unpaid costs of materials and labor costs.
In one of the mansions, Nest Interiors Commercial provided materials and labor that cost $206,805.42. Work included furniture planning and buying, lighting selection, home theater design and installation, indoor pool slide design, pool bar design, pool grotto design and installation and project management.
In the other mansion, Nest Interiors provided services that cost $42,350.39. Work included planning and selection of furniture, design of a racquetball and squash court, the design of a loft, selection of materials and products for the entire mansion, design of a training room and a gym and project management.
Both interior design projects were completed on March 20, but Wilson was able to pay only $125,748.69 for the first job and $28,579.79 for the second job, making him indebted for more than $81,000 and $13,000 respectively.