The developer of 10 Rittenhouse, the luxury Philadelphia condominium building with 33 floors 10rittenhouse.jpgand units priced from $600,000 to $15 million, recently filed for bankruptcy protection under the court’s Chapter 11 procedures. In doing so, the developer, Philadelphia Rittenhouse Development L.P., prevented the senior lender, Istar Tara L.L.C. (Istar), from placing the property in receivership. Istar is said to have invested $251 million in the project. Unit sales have helped reduced the amount owed to about $190 million.

10 Rittenhouse is comprised of 135 condominium units, retail and restaurant space. Of the 135 units, to date only about 40 have been sold.

“There is no risk” to the current unit owners, said Steven H. Shepsman, executive managing director of New World Realty Advisors in New York, which is assisting the developer in its financial restructuring.

10 Rittenhouse is not the only troubled condominium project linked to Istar, as they also served as the senior lender for the Aria, a condominium building located at 1419 Locust Street. When Aria’s developer defaulted on its loan, Istar petitioned for and achieved the receivership of that building. This move resulted in sales of Aria units being halted for more than a year.