*Jay-Z has scrapped plans to build a luxury hotel in his native New York after the venture became mired in litigation, reports the New York Post.
The rap mogul and his business partners have reportedly pulled out of the J Hotel project altogether and returned the site to its lenders for $52 million.
Jay-Z’s group purchased the property in Dec. 2007 for $66 million, and obtained the multi-million dollar loan that was assigned to investment managers Highland Capital Management LP and serviced by NexBank SSB. But the deal went bad after partners failed to attract investors and there was a shortfall in funds – prompting Jay-Z to offer the land back to bosses at Highland rather than face foreclosure.
He subsequently filed suit against the bank and investment firm in February, alleging executives were slow in accepting the offer, causing him to accrue interest and personal costs on loans of $3.7 million.