NYC Case Analysis for a $90MM deal

[Matthew Shay]

I am trying to understand something about the background history of a Manhattan building that was purchased 6 years ago by a developer in order to turn it into luxury rentals. Here is the current info: It was purchased for $60MM cash with a 30MM loan. Now the same lender issued a 70MM loan to replace the original one. It was transferred via Bargain & Sale Deed without covenants against grantor's acts. This means that the downpayment of the borrower/developer needs to go towards improvements first. Why, is it in the interest of the grantor/seller to put this in the agreement? 

This mortgages on this property were being sold like crazy before the banks collapsed. The previous owner took out a new mortgage  (300k) with the last bank that was assigned a mortgage prior to the sale. Then they signed a $10MM deal to consolidate the mortgages. How does it work when the previous owner agreed to consolidate all that debt? I do not see any records that it was paid off. 2 years later the property is bought for $90MM. What do you think would have motivated the seller to dispose of the property, to pay off the debt? The multifamily would have matured 3 years later so they would still have time. My initial thoughts is that they may have been in default but there is no lis pendens. It may have just been the right opportunity for the seller, he did get $90MM after all