Jay-Z has filed a suit against lenders he borrowed money from to develop a hotel in Manhattan.
The rap superstar is accusing Highland Capital Management LP and NexBank SSB of trying to “bleed” him for $3.7 million over a loan he took to build a new venture called the J Hotel, according to Reuters.
Hov reportedly bought the space at 511 West 21st Street back in August 2007 and took a $52 million senior loan, yet after the real estate market took a dive, Jay tried to give the land to the Highland instead of going into foreclosure.
In a complaint filed, Jay said the investment firm didn’t take the deal, causing him to pay a sizeable amount of interest fees on the loan along with carrying costs. “This action arises out of the efforts by defendants to bleed additional funds from [the] plaintiff,” the paperwork read. “Defendants embarked on a bad faith course of conduct.”
Jay is seeking $3.7 million in damages, a declaration that would allow the property to be returned, and other remedies. —Elan Mancini