White Plains developer Louis Cappelli has sold five units at the Ritz Carlton in downtown White Plains to the Royal Bank of Scotland for $22 million, according to state records.
This would be Cappelli’s second sell out of his holding in downtown White Plains in the last couple of months.
A recent deal at the neighboring City Center gave the developer an influx of about $53 million.
At the Ritz, the deed transfer log shows that the transaction was made in lieu of foreclosure with Cappelli’s LC MAIN LLC selling the deeds to the Bank of Scotland’s BOS PB LLC in October.
The state Department of State shows that both LLC’s were founded in Delaware, a common practice among businesses to avoid paying corporate taxes.
It’s likely that the deed transfers are part of a larger transaction with the Bank of Scotland, similar to the one Cappelli made with Illinois-based Inland Diversified Real Estate Trust Inc last month.
The controversial real estate developer sold a majority interest in the City Center, which is located just across the street from the Ritz, to the REIT.
That deal was structured so Cappelli could pay off two mortgages he had on the property. It included an Inland cash contribution of approximately $53 million, a capital contribution by Cappelli of approximately $37 million and the assumption by the venture of existing debt that was immediately paid off through a new Bank of America loan.
As he winds out of the high-profile properties he’s built in White Plains, Cappelli has been turning his attention to the Catskills, where he’s been fighting to develop a resort in Sullivan County. He has filed a $1.5 billion lawsuit accusing Entertainment Properties Trust — his former partner in the Concord Resort in Kiamesha Lake — and the Monticello racino operator of conspiring against him to control a monopoly on Catskills gaming.