Bankruptcy Court Dismisses Philadelphia Rittenhouse Developer's Chapter 11 Case


Bankruptcy Judge Stephen Raslavich (Chief Judge of the Eastern District of Pennsylvania Bankruptcy Court) entered an order and a 59-page opinion on Wednesday dismissing the chapter 11 bankruptcy case of Philadelphia Rittenhouse Developer, L.P. Philadelphia Rittenhouse Developer filed for chapter 11 protection in December of last year, largely as a result of a dispute with its primary secured lender (more details on the chapter 11 filing can be found here:

The secured lender, iStar Tara, LLC, subsequently asked the bankruptcy court to dismiss the bankruptcy case (more details on the motion to dismiss can be found here:, while Philadelphia Rittenhouse Developer sought to make use of iStar Tara's cash collateral and proposed a plan of reorganization (more details on the plan of reorganization can be found here: Judge Raslavich's opinion addresses both the motion to dismiss and the motion to use iStar Tara's cash collateral.

Philadelphia Rittenhouse Developer, L.P. is a joint venture between ARC Properties, Inc., based in Clifton, New Jersey, and Philadelphia-based Wheeler Brothers Holdings, LLC. The company was formed to develop 10 Rittenhouse Square, a 33-story condominium building in Philadelphia. The building, which was designed by Robert A.M. Stern Architects and built by Turner Construction, welcomed its first residents in October 2009 and features amenities such as a chauffeur-driven 2010 Mercedes-Benz S550, according to the development's marketing website. The building includes "some of the largest penthouses in Philadelphia" which were expected to sell for as much as $15 million each, according to one news report. For less well-heeled buyers, one-bedroom condominiums start at $600,000. It also includes two retail spaces, one of which is rented to clothing retailer Barneys, Inc. and the other of which is rented to a restaurant called Serafina. According to the court's opinion approximately 107 of the building's 144 condominium units remained unsold at the time of the court's hearing on the motions.

More details about the opinion and the reasons for the dismissal of the bankruptcy case can be found in the attached article or by visiting our blog:

A copy of the court's 59-page opinion can be accessed at:

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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