Rosen's Reckoning

The Wall Street Journal points out that Aby Rosen is adept at employing his art collection in his real estate properties. But now he’s  going to have to do some dealing to keep a few of those buildings in his own hands:

Mr. Rosen is negotiating an end to his partnership in the Gramercy Park Hotel with hotelier Ian Schrager, who transformed the century-old hotel with a redesign that includes contemporary artworks by artists such as Andy Warhol and Damien Hirst. In his battle to hold onto the boutique hotel, Mr. Rosen also is buying back a $140 million loan on the building from Union Labor Life Insurance for about $90 million, people with knowledge of the situation say.

A few miles uptown, Mr. Rosen is at risk of losing the property at 66 East 55th Street that houses the Core Club, an exclusive social club whose initial members included Stephen Schwarzman, co-founder of the Blackstone Group and the late Bruce Wasserstein, former head of Lazard Ltd. An $18 million loan backed by some 27,439-square-foot retail condominium space at the building has been in default since early last year.

End Game for Developers (Wall Street Journal)