throbber
FILED: APPELLATE DIVISION - 1ST DEPT 01/30/2023 01:29 PM
`NYSCEF DOC. NO. 8
`RECEIVED NYSCEF: 01/30/2023
`
`2023-00158
`
`Appellate
`Case No.:
`2023-00158
`
`
`
`New York Supreme Court
`Appellate Division—First Department
`
`
`111 WEST 57TH INVESTMENT LLC, on behalf of itself and derivatively
`on behalf of 111 West 57th Partners LLC and 111 West 57th Mezz 1, LLC,
`Plaintiff-Respondent-Appellant,
`
`– against –
`111 W57 MEZZ INVESTMENT LLC, SPRUCE CAPITAL PARTNERS LLC,
`JOSHUA CRANE, ROBERT SCHWARTZ, ATLANTIC 57 LLC, 57 MADISON
`LLC, ARTHUR BECKER, JOHN DOE ENTITY, APOLLO COMMERCIAL
`REAL ESTATE FINANCE, INC., APOLLO GLOBAL MANAGEMENT, INC.,
`AMERICAN GENERAL LIFE INSURANCE COMPANY, VARIABLE
`ANNUITY LIFE INSURANCE COMPANY, NATIONAL UNION FIRE
`INSURANCE COMPANY OF PITTSBURGH, PA, AIG PROPERTY
`CASUALTY COMPANY, THE UNITED STATES LIFE INSURANCE
`COMPANY IN THE CITY OF NEW YORK and AIG ASSET
`MANAGEMENT (U.S.), LLC,
`Defendants-Respondents,
`
`– and –
`ACREFI MORTGAGE LENDING, LLC, APOLLO CREDIT
`OPPORTUNITY FUND III AIV I LP and AGRE DEBT 1,
`Defendants-Appellants-Respondents,
`– and –
`111 WEST 57TH PARTNERS LLC and 111 WEST 57TH MEZZ 1 LLC,
`Defendants.
`
`
`
`JOINT RECORD ON APPEAL
`Volume 2 of 5 (Pages 523 to 1101)
`
`
`
`
`
`GREENBERG TRAURIG, LLP
`Attorneys for Defendants-Respondents
`111 W57 Mezz Investment LLC, Spruce
`Capital Partners LLC, Joshua Crane
`and Robert Schwartz
`One Vanderbilt Avenue
`New York, New York 10017
`(212) 801-9200
`milsteind@gtlaw.com
`
`DECHERT LLP
`Attorneys for Defendants-Appellants-
`Respondents
`Three Bryant Park
`1095 Avenue of the Americas
`New York, New York 10036
`(212) 698-3500
`gary.mennitt@dechert.com
`may.chiang@dechert.com
`pat.andriola@dechert.com
`(For Continuation of Appearances See Inside Cover)
`New York County Clerk’s Index No. 655031/17
`
`
`
`
`
`
`
`

`

`ICE MILLER LLP
`1500 Broadway, 29th Floor
`New York, New York 10036
`(212) 824-4940
`justin.klein@icemiller.com
`- and -
`COOPER & KIRK
`1523 New Hampshire Avenue, NW
`Washington, DC 20036
`(202) 220-9600
`hproctor@cooperkirk.com
`
`Attorneys for Plaintiff-Respondent-
`Appellant
`
`
`
`KATTEN MUCHIN ROSENMAN LLP
`Attorneys for Defendants-Respondents
`American General Life Insurance
`Company, Variable Annuity Life
`Insurance Company, National Union
`Fire Insurance Company of
`Pittsburgh, PA, AIG Property Casualty
`Company, The United States Life
`Insurance Company in The City of
`New York and AIG Asset Management
`(U.S.), LLC
`50 Rockefeller Plaza
`New York, New York 10020
`(212) 940-8800
`anthony.paccione@katten.com
`
`TARTER KRINSKY & DROGIN LLP
`Attorneys for Defendants-Respondents
`Atlantic 57 LLC, 57 Madison LLC and
`Arthur Becker
`1350 Broadway
`New York, New York 10018
`(212) 216-8000
`rschoenstein@tarterkrinsky.com
`blazzaro@tarterkrinsky.com
`
`
`
`
`
`
`
`
`
`
`

`

`i
`
`TABLE OF CONTENTS
`
`Statement Pursuant to CPLR § 5531 .........................
`Notice of Appeal, by Defendants ACREFI
`Mortgage Lending, LLC, Apollo Credit
`Opportunity Fund III AIV I LP and AGRE Debt 1
`– 111 W 57, LLC, dated January 3, 2023 ..............
`Notice of Appeal, by Plaintiff, dated January 18,
`2023 (Motion Seq. No. 007) ..................................
`Notice of Appeal, by Plaintiff, dated January 18,
`2023 (Motion Seq. No. 008) ..................................
`Notice of Appeal and Cross-Appeal, by Plaintiff,
`dated January 18, 2023 (Motion Seq. No. 009) .....
`Notice of Appeal, by Plaintiff, dated January 18,
`2023 (Motion Seq. No. 010) ..................................
`Decision and Order of the Honorable Joel M.
`Cohen, dated December 15, 2022, Appealed
`From, with Notice of Entry ....................................
`Transcript of Oral Argument, dated July 22, 2022 ....
`Notice of Motion, by Defendants Atlantic 57 LLC,
`57 Madison LLC and Arthur Becker, for an Order
`Dismissing Second Amended Verified Complaint,
`dated November 22, 2021
`(Motion Seq. No. 008) ...........................................
`Affirmation of Richard C. Schoenstein, for
`Defendants Atlantic 57 LLC, 57 Madison LLC
`and Arthur Becker, in Support of Motion, dated
`November 22, 2021 ...............................................
`
`Page
`1
`
`3
`
`5
`
`7
`
`9
`
`11
`
`13
`31
`
`123
`
`126
`
`

`

`
`
`ii
`
`Exhibit A to Schoenstein Affirmation –
`Second Amended Verified Complaint, dated
`September 30, 2021 ...............................................
`Exhibit B to Schoenstein Affirmation –
`111 West 57th Partners LLC Amended and
`Restated Limited Liability Company Agreement,
`dated December 17, 2013 ......................................
`Exhibit C to Schoenstein Affirmation –
`First Amendment to Amended and Restated
`Intercreditor Agreement, dated June 28, 2017 .......
`Exhibit D to Schoenstein Affirmation –
`Strict Foreclosure Proposal, dated July 7, 2017 ....
`Exhibit E to Schoenstein Affirmation –
`Letter from 111 West 57th Investment LLC, dated
`July 11, 2017 ..........................................................
`Exhibit F to Schoenstein Affirmation –
`Letter from 111 West 57th Sponsor LLC, dated
`July 12, 2017 ..........................................................
`Exhibit G to Schoenstein Affirmation –
`Letter from 111 West 57th Sponsor LLC, dated
`July 19, 2017 ..........................................................
`Exhibit H to Schoenstein Affirmation –
`Letters from 111 West 57th Investment LLC,
`dated July 21, 2017 ................................................
`Exhibit I to Schoenstein Affirmation –
`(i) Letter from 111 West 57th Investment LLC,
`dated July 23, 2017 ................................................
`(ii) E-mails, dated July 24, 2017 ............................
`
`
`Page
`
`130
`
`173
`
`279
`
`296
`
`298
`
`301
`
`303
`
`305
`
`312
`316
`
`

`

`
`
`iii
`
`Exhibit J to Schoenstein Affirmation –
`Letter from 111 West 57th Investment LLC, dated
`July 24, 2017 ..........................................................
`Exhibit K to Schoenstein Affirmation –
`Transcript of July 26, 2017 Proceedings ...............
`Exhibit L to Schoenstein Affirmation –
`Letter from 111 West 57th Investment LLC, dated
`August 28, 2017 .....................................................
`Exhibit M to Schoenstein Affirmation –
`Organizational Charts ............................................
`Notice of Motion, by Defendants 111 W57th Mezz
`Investor LLC, Spruce Capital Partners LLC,
`Joshua Crane and Robert Schwartz, for an Order
`Dismissing the Third Cause of Action in the
`Second Amended Verified Complaint, dated
`November 22, 2021 (Motion Seq. No. 007) ..........
`Affirmation of Steven Sinatra, for Defendants 111
`W57th Mezz Investor LLC, Spruce Capital
`Partners LLC, Joshua Crane and Robert
`Schwartz, in Support of Motion, dated
`November 22, 2021 ...............................................
`Exhibit A to Sinatra Affirmation –
`Second Amended Verified Complaint, dated
`September 30, 2021
`(Reproduced herein at pp. 130-172) ......................
`Exhibit B to Sinatra Affirmation –
`111 West 57th Partners LLC Amended and
`Restated Limited Liability Company Agreement,
`dated December 17, 2013
`(Reproduced herein at pp. 173-278) ......................
`
`Page
`
`333
`
`337
`
`354
`
`358
`
`366
`
`368
`
`393
`
`393
`
`

`

`
`
`iv
`
`Exhibit C to Sinatra Affirmation –
`Decision in 111 W. 57th Inv. LLC v. 111w57 Mezz
`Inv. LLC., 192 A.D.3d 618 (March 30, 2021) ........
`Exhibit D to Sinatra Affirmation –
`Excerpts from the Second Amended Complaint in
`Ambase Corporation, et al. v. 111 West 57th
`Sponsor LLC, et al., Index No. 652301/2016 ........
`Exhibit E to Sinatra Affirmation –
`Letters from ACREFI Mortgage Lending, LLC,
`dated January 3, 2017 and February 1, 2017 .........
`Exhibit F to Sinatra Affirmation –
`Forbearance Agreement, dated March 3, 2017 ......
`Exhibit G to Sinatra Affirmation –
`Summons and Verified Complaint in Ambase
`Corp. v. ACREFI Mortg. Lending, LLC, No.
`653251/2018 (“Ambase v. ACREFI”), dated
`June 27, 2018 .........................................................
`Exhibit H to Sinatra Affirmation –
`Junior Mezzanine Construction Loan Agreement,
`dated March 28, 2017 ............................................
`Exhibit I to Sinatra Affirmation –
`Pledge and Security Agreement, dated
`March 28, 2017 ......................................................
`Exhibit J to Sinatra Affirmation –
`Junior Mezzanine Guarantee Agreement, dated
`March 28, 2017 ......................................................
`
`Page
`
`394
`
`397
`
`416
`
`423
`
`495
`
`523
`
`764
`
`802
`
`

`

`
`
`v
`
`Exhibit K to Sinatra Affirmation –
`Affidavit of Joshua Crane in Opposition to
`Motion for a Preliminary Injunction and in
`Support of Cross-Motion to Dismiss the
`Complaint and to Quash Subpoenas, sworn to
`August 10, 2017 .....................................................
`Exhibit L to Sinatra Affirmation –
`Strict Foreclosure Proposal, dated July 7, 2017
`(Reproduced herein at pp. 296-297) ......................
`Exhibit M to Sinatra Affirmation –
`Letter from 111 West 57th Investment LLC, dated
`July 11, 2017
`(Reproduced herein at pp. 298-300) ......................
`Exhibit N to Sinatra Affirmation –
`Letter from 111 West 57th Sponsor LLC, dated
`July 19, 2017
`(Reproduced herein at pp. 303-304) ......................
`Exhibit O to Sinatra Affirmation –
`Letters from 111 West 57th Investment LLC,
`dated July 21, 2017
`(Reproduced herein at pp. 305-311) ......................
`Exhibit P to Sinatra Affirmation –
`(i) Letter from 111 West 57th Investment LLC,
`dated July 23, 2017
`(Reproduced herein at pp. 312-315) ......................
`(ii) E-mails, dated July 24, 2017
`(Reproduced herein at pp. 316-332) ......................
`Exhibit Q to Sinatra Affirmation –
`(i) Letters from 111 West 57th Investment LLC,
`dated July 24, 2017
`(Reproduced herein at pp. 333-336) ......................
`
`Page
`
`820
`
`826
`
`826
`
`826
`
`826
`
`826
`
`826
`
`826
`
`

`

`
`
`vi
`
`(ii) E-mails, dated July 25, 2017 ............................
`Exhibit R to Sinatra Affirmation –
`Verified Complaint, dated July 25, 2017 ...............
`Exhibit S to Sinatra Affirmation –
`Order to Show Cause with Temporary
`Restraining Order, dated July 26, 2017 .................
`Exhibit T to Sinatra Affirmation –
`Decision and Order of the Honorable Elieen
`Bransten, dated August 8, 2017 .............................
`Exhibit U to Sinatra Affirmation –
`Decision of the Appellate Division, First
`Department, dated January 17, 2019 .....................
`Exhibit V to Sinatra Affirmation –
`Transcript of Proceedings, dated May 16, 2019 ....
`Exhibit W to Sinatra Affirmation –
`Amended Verified Complaint, dated
`May 14, 2019 .........................................................
`Exhibit X to Sinatra Affirmation –
`Briefs filed by 111 W57th Mezz Investors LLC
`with the Appellate Division, First Department ......
`Exhibit Y to Sinatra Affirmation –
`Plaintiff’s Discovery Demands ..............................
`Exhibit Z to Sinatra Affirmation –
`Defendant 111 W57th Mezz Investors LLC’s
`Responses and Objections to Plaintiff’s First Set
`of Interrogatories, dated March 6, 2020 ................
`Exhibit AA to Sinatra Affirmation –
`Letter from Cooper & Kirk, dated July 31, 2020,
`with Enclosures ......................................................
`
`Page
`827
`
`848
`
`875
`
`878
`
`919
`
`921
`
`946
`
`980
`
`1102
`
`1150
`
`1160
`
`

`

`
`
`vii
`
`Exhibit BB to Sinatra Affirmation –
`E-mail Correspondence .........................................
`Exhibit CC to Sinatra Affirmation –
`E-mail Correspondence .........................................
`Exhibit DD to Sinatra Affirmation –
`E-mail Correspondence .........................................
`Exhibit EE to Sinatra Affirmation –
`First Amendment to Amended and Restated
`Intercreditor Agreement, dated June 28, 2017
`(Reproduced herein at pp. 279-295) ......................
`Exhibit FF to Sinatra Affirmation –
`Excerpts from the Building Loan Agreement,
`dated June 30, 2015 ...............................................
`Exhibit GG to Sinatra Affirmation –
`Amended and Restated Intercreditor Agreement,
`dated March 28, 2017 ............................................
`Exhibit HH to Sinatra Affirmation –
`E-mail, dated May 7, 2018, with attached
`Limited Liability Company Operating Agreement
`of Manager 111W57 LLC, dated May 7, 2018 ......
`Notice of Motion, by Defendants ACREFI
`Mortgage Lending, LLC, Apollo Credit
`Opportunity Fund III AIV I LP, AGRE Debt 1 –
`111 W 57, LLC, Apollo Commercial Real Estate
`Finance, Inc. and Apollo Global Management
`(“Apollo Defendants”), for an Order Dismissing
`Second Amended Verified Complaint, dated
`November 22, 2021 (Motion Seq. No. 009) ..........
`
`Page
`
`1164
`
`1167
`
`1180
`
`1183
`
`1184
`
`1193
`
`1296
`
`1390
`
`

`

`
`
`viii
`
`Affirmation of Gary J. Mennitt, for Apollo
`Defendants, in Support of Motion, dated
`November 22, 2021 ...............................................
`Exhibit 1 to Mennitt Affirmation –
`Second Amended Verified Complaint, dated
`September 30, 2021
`(Reproduced herein at pp. 130-172) ......................
`Exhibit 2 to Mennitt Affirmation –
`Docket Entries in Ambase Corp. v. ACREFI
`Mortg. Lending, LLC, No. 653251/2018 ...............
`Exhibit 3 to Mennitt Affirmation –
`Summons and Verified Complaint in Ambase v.
`ACREFI, dated June 27, 2018
`(Reproduced herein at pp. 495-522) ......................
`Exhibit 4 to Mennitt Affirmation –
`Notice of Motion to Dismiss in Ambase v.
`ACREFI, dated August 17, 2018 ............................
`Exhibit 5 to Mennitt Affirmation –
`Memorandum of Law in Support of the Motion
`to Dismiss in Ambase v. ACREFI, dated
`August 17, 2018 .....................................................
`Exhibit 6 to Mennitt Affirmation –
`Affirmation of Gary Mennitt in Support of the
`Motion to Dismiss in Ambase v. ACREFI, dated
`August 17, 2018 .....................................................
`Exhibit 7 to Mennitt Affirmation –
`Exhibit B to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Amended and Restated Joint Venture
`Agreement, dated December 17, 2013
`(Reproduced herein at pp. 173-278) ......................
`
`Page
`
`1392
`
`1399
`
`1400
`
`1405
`
`1406
`
`1408
`
`1435
`
`1438
`
`

`

`
`
`ix
`
`Exhibit 8 to Mennitt Affirmation –
`Exhibit C to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Apollo’s First Shortfall Contribution
`Demand Notice, dated January 25, 2017 ...............
`Exhibit 9 to Mennitt Affirmation –
`Exhibit D to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Apollo’s Second Shortfall Contribution
`Demand Notice, dated January February 1, 2017 ..
`Exhibit 10 to Mennitt Affirmation –
`Exhibit E to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Mezzanine Construction Loan
`Agreement, dated June 30, 2015 ............................
`Exhibit 11 to Mennitt Affirmation –
`Exhibit F to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI Letter from 111 West 57th Holdings
`LLC to Apollo, dated January 27, 2017 .................
`Exhibit 12 to Mennitt Affirmation –
`Exhibit G to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Letter from Apollo to 111 West 57th
`Holdings LLC, dated February 1, 2017 .................
`Exhibit 13 to Mennitt Affirmation –
`Exhibit H to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Letter from 111 West 57th Investment
`LLC to 111 West 57th Sponsor LLC, dated
`February 14, 2017 ..................................................
`
`Page
`
`1439
`
`1445
`
`1452
`
`1700
`
`1702
`
`1705
`
`

`

`
`
`x
`
`Exhibit 14 to Mennitt Affirmation –
`Exhibit I to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Letter from 111 West 57th Sponsor
`LLC to 111 West 57th Investment LLC, dated
`February 24, 2017 ..................................................
`Exhibit 15 to Mennitt Affirmation –
`Exhibit J to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Junior Mezzanine Construction Loan
`Agreement, dated March 28, 2017
`(Reproduced herein at pp. 523-763) ......................
`Exhibit 16 to Mennitt Affirmation –
`Exhibit K to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Original Intercreditor Agreement, dated
`June 30, 2015 .........................................................
`Exhibit 17 to Mennitt Affirmation –
`Exhibit L to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Amended and Restated Intercreditor
`Agreement, dated March 28, 2017
`(Reproduced herein at pp. 1193-1295) ..................
`Exhibit 18 to Mennitt Affirmation –
`Exhibit M to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Written Consent of the Managing
`Members of the Co-Managing Members of 111
`West 57th Control LLC, dated June 30, 2015 ........
`
`Page
`
`1710
`
`1713
`
`1714
`
`1779
`
`1780
`
`

`

`
`
`xi
`
`Exhibit 19 to Mennitt Affirmation –
`Exhibit N to the Affirmation of Gary Mennitt in
`Support of Motion to Dismiss in Ambase v.
`ACREFI, Second Amended Complaint in Ambase
`Corp. v. 111 West 57th Sponsor LLC, Index No.
`652301/2016, dated October 14, 2016 ...................
`Exhibit 20 to Mennitt Affirmation –
`Plaintiffs’ Memorandum of Law in Opposition to
`Defendants’ Motion to Dismiss the Complaint in
`Ambase v. ACREFI, dated September 17, 2018 .....
`Exhibit 21 to Mennitt Affirmation –
`Affirmation of Stephen B. Meister in Opposition
`to Defendants’ Motion to Dismiss the Complaint
`in Ambase v. ACREFI, dated September 17, 2018 .
`Exhibit 22 to Mennitt Affirmation –
`Exhibit A to the Affirmation of Stephen B.
`Meister in Opposition to Defendants’ Motion to
`Dismiss the Complaint in Ambase v. ACREFI,
`First Amendment to Amended and Restated
`Intercreditor Agreement, dated June 28, 2017
`(Reproduced herein at pp. 279-295) ......................
`Exhibit 23 to Mennitt Affirmation –
`Defendants’ Reply Memorandum of Law in
`Further Support of the Motion to Dismiss in
`Ambase v. ACREFI, dated October 5, 2018 ...........
`Exhibit 24 to Mennitt Affirmation –
`Affidavit of Scott Weiner in Further Support of
`Defendants’ Motion to Dismiss the Complaint in
`Ambase v. ACREFI, dated October 5, 2018 ...........
`
`Page
`
`1791
`
`1849
`
`1878
`
`1879
`
`1880
`
`1896
`
`

`

`
`
`xii
`
`Exhibit 25 to Mennitt Affirmation –
`Exhibit A to the Affidavit of Scott Weiner in
`Further Support of Defendants’ Motion to
`Dismiss the Complaint in Ambase v. ACREFI,
`February 7, 2017 Notice to Lenders and
`Assignment and Assumption Agreement ...............
`Exhibit 26 to Mennitt Affirmation –
`Transcript of the Oral Argument in Ambase v.
`ACREFI, dated March 12, 2019 ............................
`Exhibit 27 to Mennitt Affirmation –
`Decision and Order of the Honorable O. Peter
`Sherwood in Ambase v. ACREFI, dated
`October 22, 2019 ...................................................
`Exhibit 28 to Mennitt Affirmation –
`Judgment in Ambase v. ACREFI, dated
`November 8, 2019 .................................................
`Exhibit 29 to Mennitt Affirmation –
`Notice of Entry of the Judgment in Ambase v.
`ACREFI, dated November 11, 2019 ......................
`Exhibit 30 to Mennitt Affirmation –
`Plaintiffs’ Notice of Appeal in Ambase v.
`ACREFI, dated December 6, 2019. .......................
`Exhibit 31 to Mennitt Affirmation –
`Docket Entries in Ambase Corp. v. ACREFI
`Mortg. Lending, LLC, Appellate Case No.
`2019/05391 (1st Dep’t) (the “Ambase v. ACREFI
`Appeal”) .................................................................
`Exhibit 32 to Mennitt Affirmation –
`Opening Brief for Plaintiffs-Appellants in
`Ambase v. ACREFI Appeal, dated
`August 7, 2020. ......................................................
`
`Page
`
`1898
`
`1921
`
`1962
`
`1973
`
`1977
`
`1983
`
`2004
`
`2006
`
`

`

`
`
`xiii
`
`Exhibit 33 to Mennitt Affirmation –
`Brief for Defendants-Respondents in Ambase v.
`ACREFI Appeal, dated September 9, 2020 ............
`Exhibit 34 to Mennitt Affirmation –
`Reply Brief for Plaintiffs-Appellants in Ambase
`v. ACREFI Appeal, dated September 28, 2020. .....
`Exhibit 35 to Mennitt Affirmation –
`Stipulation to Withdraw Appeal, with prejudice,
`in Ambase v. ACREFI Appeal, dated
`April 20, 2021. .......................................................
`Exhibit 36 to Mennitt Affirmation –
`Pledge and Security Agreement, dated
`March 28, 2017
`(Reproduced herein at pp. 764-801) ......................
`Affirmation of Brian T. Carney, for Apollo
`Defendants, in Support of Motion, dated
`November 22, 2021 ...............................................
`Exhibit A to Carney Affirmation –
`Corporate Structure Flowchart ..............................
`Exhibit B to Carney Affirmation –
`Corporate Structure Flowchart ..............................
`Notice of Motion, by Defendants American General
`Life Insurance Company, Variable Annuity Life
`Insurance Company, National Union Fire
`Insurance Company of Pittsburgh, PA, AIG
`Property Casualty Company, The United States
`Life Insurance Company in the City of New York
`and AIG Asset Management (U.S.), LLC (“AIG
`Defendants”), for Order Dismissing Second
`Amended Verified Complaint, dated November
`22, 2021 (Motion Seq. No. 010) ............................
`
`Page
`
`2066
`
`2090
`
`2114
`
`2116
`
`2117
`
`2119
`
`2120
`
`2121
`
`

`

`
`
`xiv
`
`Affirmation of Anthony L. Paccione, for AIG
`Defendants, in Support of Motion, dated
`November 22, 2021 ...............................................
`Exhibit A to Paccione Affirmation –
`Second Amended Verified Complaint, dated
`September 30, 2021
`(Reproduced herein at pp. 130-172) ......................
`Exhibit B to Paccione Affirmation –
`111 West 57th Partners LLC Amended and
`Restated Limited Liability Company Agreement,
`dated December 17, 2013
`(Reproduced herein at pp. 173-278) ......................
`Exhibit C to Paccione Affirmation –
`Building Loan Agreement, dated June 30, 2015 ....
`Exhibit D to Paccione Affirmation –
`Original Intercreditor Agreement, dated
`June 30, 2015
`(Reproduced herein at pp. 1714-1778) ..................
`Exhibit E to Paccione Affirmation –
`Complaint in Ambase Corp. v. 111 West 57th
`Sponsor LLC, Index No. 652301/2016, dated
`April 29, 2016 ........................................................
`Exhibit F to Paccione Affirmation –
`Fourth Amended Complaint Ambase Corp. v. 111
`West 57th Sponsor LLC, Index No. 652301/2016,
`dated July 29, 2021 ................................................
`Exhibit G to Paccione Affirmation –
`Notices from the Senior Mezzanine Lender to the
`Senior Mezzanine Borrower dated January 3,
`2017 and February 1, 2017 ....................................
`
`Page
`
`2123
`
`2127
`
`2127
`
`2128
`
`2407
`
`2408
`
`2456
`
`2532
`
`

`

`
`
`xv
`
`Exhibit H to Paccione Affirmation –
`Amended and Restated Intercreditor Agreement,
`dated March 28, 2017
`(Reproduced herein at pp. 1193-1295) ..................
`Exhibit I to Paccione Affirmation –
`First Amendment to the Amended and Restated
`Intercreditor Agreement dated June 28, 2017
`(Reproduced herein at pp. 279-295) ......................
`Exhibit J to Paccione Affirmation –
`Funding Arrangement Agreement, dated
`June 28, 2017 .........................................................
`Affidavit of Haley N. Proctor, for Plaintiff, in
`Opposition to Defendants’ Motions, sworn to
`December 13, 2021 ................................................
`Exhibit 1 to Proctor Affidavit –
`Notice of Entry, dated August 29, 2017 .................
`Exhibit 2 to Proctor Affidavit –
`Delaware Entity Search Status ...............................
`Exhibit 3 to Proctor Affidavit –
`Real Property Transfer Tax Return ........................
`Exhibit 4 to Proctor Affidavit –
`Junior Mezzanine Lender’s Notice of Retention
`of Pledged Collateral in Full Satisfaction of
`Indebtedness, dated August 30, 2017 ....................
`Exhibit 5 to Proctor Affidavit –
`Reply Brief for Defendant-Appellant-Respondent
`111 W57th Mezz Investor LLC filed in 111 W.
`57th Inv. LLC v. 111 W57 Mezz Investor LLC, No.
`2020-01600 (1st Dep’t Nov. 6, 2020)
`(Reproduced herein at pp. 1048-1101) ..................
`
`Page
`
`2540
`
`2540
`
`2541
`
`2550
`
`2562
`
`2605
`
`2606
`
`2632
`
`2636
`
`

`

`
`
`xvi
`
`Exhibit 6 to Proctor Affidavit –
`Memorandum of Law in Support of Plaintiff’s
`Motion to Amend the Verified Amended
`Complaint, dated April 12, 2021 ............................
`Exhibit 7 to Proctor Affidavit –
`Affidavit of Haley N. Proctor in Support of
`Plaintiff’s Moton for Leave to Amend, sworn to
`April 12, 2021 ........................................................
`Exhibit 8 to Proctor Affidavit –
`E-mail Correspondence .........................................
`Exhibit 9 to Proctor Affidavit –
`Transcript of Oral Argument, dated
`September 30, 2021 ...............................................
`Affirmation of Eugene Meyers, for Plaintiff, in
`Opposition to Defendants’ Motions, dated
`December 13, 2021 ................................................
`Exhibit A to Meyers Affirmation –
`Initial Proposed Judgment in Ambase v. ACREFI .
`Exhibit B to Meyers Affirmation –
`(i) Corrected Proposed Judgment in Ambase v.
`ACREFI ..................................................................
`(ii) Affirmation of Gary J. Mennitt in Support of
`Proposed Final Judgment, dated
`November 8, 2019 .................................................
`Reply Affirmation of Steven Sinatra, for Defendants
`111 W57th Mezz Investor LLC, Spruce Capital
`Partners LLC, Joshua Crane and Robert
`Schwartz, in Further Support of Motion, dated
`January 7, 2022 ......................................................
`
`Page
`
`2637
`
`2658
`
`2666
`
`2671
`
`2727
`
`2731
`
`2733
`
`2735
`
`2737
`
`

`

`
`
`xvii
`
`Exhibit II to Sinatra Affirmation –
`Transcript of Oral Argument, dated
`March 9, 2021 ........................................................
`Certification Pursuant to CPLR § 2105 .....................
`
`Page
`
`2740
`2773
`
`

`

`523
`
`EXHIBIT H TO SINATRA AFFIRMATION -
`JUNIOR MEZZANINE CONSTRUCTION LOAN AGREEMENT,
`DATED MARCH 28, 2017 [523 - 763]
`
`FILED: NEW YORK COUNTY CLERK MS/22/202$ 08:33 PM
`NYSCEF DOC. NO. 216
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: MS/22/2029
`
`JUNIOR MEZZANINE CONSTRUCTION LOAN AGREEMENT
`
`Dated as of March 28, 2017
`
`by and among
`
`111 WEST 57TH MEZZ 1 LLC,
`a Delaware limited liability company,
`as Borrower
`
`and
`
`ACREFI MORTGAGE LENDING, LLC,
`a Delaware limited liability company,
`
`and
`
`APOLLO CREDIT OPPORTUNITY FUND III AIV I LP,
`a Delaware limited partnership,
`
`and
`
`AGRE DEBT I — 111 W 57, LLC,
`a Delaware limited liability company,
`collectively, as Lender
`Loan Amount: $25,000,000.00
`
`111 West 57th Street
`New York, New York
`
`EAST1140436312.10
`
`

`

`524
`
`FILED: NEW YORK COUNTY CLERK @S/22/2021 09:39 PM
`NYSCEF DOC. NO. 21®
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: H/22/2029
`
`TABLE OF CONTENTS
`
`ARTICLE 1 CERTAIN DEFINITIONS
`
`1.1
`
`1.2
`
`Definitions
`
`Principles of Construction
`
`ARTICLE 2 GENERAL TERMS
`
`2.1
`
`2.2
`
`2.3
`
`2.4
`
`2.5
`
`2.6
`
`2.7
`
`2.8
`
`2.9
`
`Loan
`
`Servicing Fee, Construction Monitoring Fee and Lender's Construction
`Representative's Fee
`
`Security for the Loan
`
`Borrower's Notes
`
`Principal and Interest
`
`Prepayment
`
`Extension Options
`
`Application of Payments After Event of Default
`
`Method and Place of Payment to Lender
`
`2.10 Taxes
`
`2.11
`
`Release of Collateral
`
`2.12 Debt Service Advances
`
`2.13
`
`Security Agreement
`
`2.14 Mortgage Recording Taxes
`
`2.15 [Reserved]
`
`2.16 General Interest Provisions
`
`2.17 Net Sales Proceeds Accounts
`
`2.18
`
`Interest Rate Protection Agreement
`
`2.19 Cash Collateral Arrangements
`
`ARTICLE 3 CONDITIONS PRECEDENT
`
`3.1
`
`Conditions Precedent to Effectiveness
`
`3.2 [Reserved]
`
`3.3 [Reserved]
`
`3.4
`
`Form of Loan Documents and Related Matters
`
`ARTICLE 4 REPRESENTATIONS AND WARRANTIES
`
`4.1
`
`Representations and Warranties as to Borrower Parties
`
`EAST\140436312.10
`
`i
`
`Page
`
`2
`
`2
`
`43
`
`44
`
`44
`
`45
`
`45
`
`45
`
`45
`
`46
`
`47
`
`47
`
`47
`
`47
`
`47
`
`48
`
`48
`
`50
`
`50
`
`50
`
`51
`
`51
`
`52
`
`52
`
`52
`
`56
`
`56
`
`56
`
`56
`
`56
`
`

`

`525
`
`FILED: NEW YORK COUNTY CLERK @S/22/2021 09:39 PM
`NYSCEF DOC. NO. 21®
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: H/22/2029
`
`TABLE OF CONTENTS
`(continued)
`
`4.2
`
`4.3
`
`4.4
`
`4.5
`
`Representations and Warranties as to the Collateral
`
`Mortgage Loan and Senior Mezzanine Loan
`
`Permitted Debt and Liabilities
`
`Survival of Representations
`
`ARTICLE 5 AFFIRMATIVE COVENANTS
`
`5.1
`
`5.2
`
`Affirmative Covenants
`
`Construction Covenants
`
`ARTICLE 6 NEGATIVE COVENANTS
`
`6.1
`
`Negative Covenants
`
`ARTICLE 7 EVENTS OF DEFAULT
`
`7.1
`
`7.2
`
`7.3
`
`7.4
`
`7.5
`
`Event of Default
`
`Remedies
`
`Remedies Cumulative
`
`Curative Advances
`
`Expenses of Enforcement
`
`ARTICLE 8 GENERAL PROVISIONS
`
`8.1
`
`8.2
`
`8.3
`
`8.4
`
`8.5
`
`8.6
`
`8.7
`
`8.8
`
`8.9
`
`Survival
`
`Lender's Discretion
`
`Governing Law
`
`Modification, Waiver in Writing
`
`Delay Not a Waiver
`
`Notices
`
`TRIAL BY JURY
`
`Headings
`
`Assignment
`
`8.10
`
`Severability
`
`8.11
`
`Preferences
`
`8.12 Waiver of Notice
`
`8.13
`
`Failure to Consent
`
`8.14
`
`Exhibits and Schedules Incorporated
`
`8.15
`
`Offsets, Counterclaims and Defenses
`
`EAST\140436312.10
`
`ii
`
`Page
`
`65
`
`66
`
`67
`
`67
`
`67
`
`67
`
`103
`
`111
`
`111
`
`121
`
`121
`
`125
`
`126
`
`127
`
`127
`
`127
`
`127
`
`127
`
`127
`
`128
`
`129
`
`129
`
`131
`
`131
`
`131
`
`133
`
`133
`
`133
`
`133
`
`134
`
`134
`
`

`

`526
`
`FILED: NEW YORK COUNTY CLERK @S/22/2021 09:39 PM
`NYSCEF DOC. NO. 21®
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: H/22/2029
`
`TABLE OF CONTENTS
`(continued)
`
`8.16 No Joint Venture or Partnership
`
`8.17 Waiver of Marshaling of Assets Defense
`
`8.18
`
`Conflict; Construction of Documents
`
`8.19
`
`Brokers and Financial Advisors
`
`8.20
`
`Counterparts
`
`8.21
`
`Estoppel Certificates
`
`8.22 Payment of Expenses
`
`8.23 Time of the Essence
`
`8.24 No Third Party Beneficiaries
`
`8.25
`
`Reinstatement
`
`8.26 Usury Savings Clause
`
`8.27
`
`Entire Agreement
`
`8.28
`
`Joint and Several Obligation
`
`8.29
`
`Successors and Assigns
`
`8.30
`
`Subrogation of Lender
`
`8.31
`
`Limitation on Liability
`
`8.32 Appointment of Servicer and Delegation of Lender Responsibilities
`
`8.33
`
`Acceptance of Cures for Events of Default
`
`8.34 Binding Action
`
`8.35
`
`Reasonable Standard
`
`8.36 Claims Against Lender
`
`8.37 Release
`
`8.38 Acknowledgement of Alternatives
`
`8.39 No Duplication Required
`
`ARTICLE 9 CONDOMINIUM PROVISIONS
`
`9.1
`
`9.2
`
`9.3
`
`Offering Plan
`
`Sale of Condominium Units/Release of Condominium Units
`
`Resignations of Mortgage Borrower from Condominium Board
`
`ARTICLE 10
`
`MORTGAGE LOAN
`
`10.1
`
`Mortgage Loan Notices. Communications, and Certificates
`
`EAST\140436312.10
`
`iii
`
`Page
`
`134
`
`134
`
`134
`
`134
`
`135
`
`135
`
`135
`
`136
`
`136
`
`136
`
`136
`
`136
`
`137
`
`137
`
`137
`
`137
`
`140
`
`141
`
`141
`
`141
`
`142
`
`142
`
`142
`
`142
`
`142
`
`142
`
`147
`
`151
`
`151
`
`151
`
`

`

`527
`
`FILED: NEW YORK COUNTY CLERK @S/22/2021 09:39 PM
`NYSCEF DOC. NO. 21®
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: H/22/2029
`
`TABLE OF CONTENTS
`(continued)
`
`10.2 Communications with Mortgage Lender
`
`10.3 Mortgage Loan Estoppels
`
`10.4
`
`Intercreditor Agreement
`
`10.5 [Reserved]
`
`10.6 Mortgage Loan Defaults
`
`10.7
`
`Refinancing of Mortgage Loan
`
`10.8
`
`Acquisition of Mortgage Loan
`
`10.9
`
`Modification of Mortgage Loan Documents
`
`10.10 Deed in Lieu of Foreclosure
`
`10.11 Independent Approval Rights
`
`ARTICLE 11
`
`SENIOR MEZZANINE LOAN
`
`11.1
`
`Senior Mezzanine Loan Notices. Communications, and Certificates
`
`11.2 Communications with Senior Mezzanine Lender
`
`11.3
`
`Senior Mezzanine Loan Estoppels
`
`11.4
`
`Senior Mezzanine Loan Defaults
`
`11.5
`
`Refinancing of Senior Mezzanine Loan
`
`11.6
`
`Acquisition of Senior Mezzanine Loan
`
`11.7
`
`Modification of Senior Mezzanine Loan Documents
`
`11.8 Deed in Lieu of Foreclosure
`
`11.9 Independent Approval Rights
`
`Page
`
`151
`
`152
`
`152
`
`153
`
`153
`
`154
`
`154
`
`155
`
`155
`
`155
`
`156
`
`156
`
`156
`
`156
`
`157
`
`158
`
`159
`
`159
`
`160
`
`160
`
`EAST\140436312.10
`
`iv
`
`

`

`528
`
`FILED: NEW YORK COUNTY CLERK @S/22/2021 09:33 PM
`NYSCEF DOC. NO. 21®
`
`INDEX NO. 655031/2017
`
`RECEIVED NYSCEF: H/22/2029
`
`TABLE OF CONTENTS
`(continued)
`
`Page
`
`LIST OF EXHIBITS AND SCHEDULES
`
`Exhibit A
`
`Exhibit B
`
`Organizational Chart
`
`Lender's Wire Instructions
`
`Exhibit 6.1.3(F)(xiv)

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