By Patrick Hedlund
DNAinfo News Editor
MANHATTAN — The Riverton Houses in Harlem were auctioned off for $125 million after the owner failed to pay debts on the massive middle-class complex.
Developer Laurence Gluck did not fight the foreclosure of the 1,228-unit complex located between 135th and 138th streets, from Fifth Avenue to the Harlem River, the Daily News reported.
Gluck, who in 2005 paid $131 million for the one-time home of former Mayor David Dinkins, encountered problems a year ago when he defaulted on the mortgage.
He had planned to renovate the apartments and convert rent-regulated units to market rates, but slow progress on the conversions and the sluggish market forced the foreclosure, the Daily News said.
Wells Fargo reportedly used credit from the money debt holders were owed to make the no-cash bid.
The complex will be run by a new management company, and the trust Wells Fargo represents will take the property title within days, the Daily News reported.