B
ank Hapaolim has acquired a development site at 140-142 Fulton Street in Manhattan after foreclosing on the property from Hidrock Properties. The bank purchased the site for $36.9 million, which is significantly lower than the original purchase price of $41 million paid by Hidrock in 2018.

    Hidrock had borrowed $32.8 million from Bank Hapaolim to develop a hotel on the site, but failed to meet the loan's maturity deadline despite three extensions. The bank initiated foreclosure proceedings and won a judgment for $39.2 million. After an auction was scheduled for early 2024, the bank agreed to allow Hidrock to market the property itself in hopes of getting a better sale.

    However, when Bank Hapaolim found a prospective buyer, Hidrock allegedly sabotaged the sale by refusing to sign transfer documents. The bank sued but later withdrew the suit after the documents were executed. It's unclear what Bank Hapaolim plans for the sites, which could potentially be redeveloped into residential units given the current hotel development challenges in the area.