Updated: Wednesday, June 12, 2013, 4:47 PM
North Broad Street apartment developer Eric Blumenfeld's ex-business partner, Market Street apartment developer Ron Caplan (the two are waging a nasty legal fight, as my colleague Jennifer Lin wrote here), says in court papers that he has purchased Blumenfeld's $28 million personally guaranteed but sadly defaulted Wells Fargo Bank loan, which was supposed to fund the aborted conversion of the Marine Club apartments at Broad and Washington into condominiums.
Caplan has told his lawyers to collect the money, now swollen to $37 million with interest and attorney fees. "We have the judgment," and have sent Blumefeld requests for information about personal assets that could be used to pay what Blumenfeld owes, Caplan's lawyer, H. Robert Fiebach of Cozen O'Connor, confirms.
UPDATE: But Blumenfeld plans to challenge Caplan's claim on the loan, says Blumenfeld's New York lawyer, Jonathan Minsker. That would put Caplan's ability to collect on his judgment (which was purchased from the bank at a greater than 50% discount) into question. Minsker notes that the dispute over who controls the asset, and under what conditions, is a focus of the larger litigation (see link above).
EARLIER: What does this mean for Blumenfeld's long-awaited plans to rebuild the gutted Divine Lorraine hotel into apartments? Or his other Center City proposals? "There is nothing that's gonna stop me from my plans to develop the Divine Lorraine," Blumenfeld told me. Same goes for the Sheet Metal Workers' site on Columbus Ave., he added: "No way anything is going to stop me from my plans."