The Lipstick Building, the sixteenth and seventeenth floors of which housed the offices of Madoff Securities, is facing foreclosure, in part because of the insane $210 million mortgage on the property, and in part, the company holding it says, because Bernie is no longer paying his rent. “It was an ingenious finance structure at the time, which was predicated on a significant growth in rent, which, due to Madoff and market factors, did not occur,” said Howard Michaels of the Carlton Group, which arranged the financing. [NYP]
