Fortress Investment Group, the hedge fund and buyout firm run by Wesley Edens, will acquire a $640 million Manhattan condominium project being built by New York developer Kent Swig through a foreclosure proceeding, according to two people familiar with the transaction.

Fortress bought the most senior mezzanine debt on the development and will take ownership of the property from a company Swig controls, said the sources.

The deal paves the way for construction to resume on the 58-story building at West 57th Street, known as Sheffield57, which features multimillion-dollar apartments, and for payment of all construction debts, the people said.

Swig defaulted on the project’s $400 million first mortgage when it matured in April and on the mezzanine debt when it matured in May, one person said. The loans were current until the defaults at maturity, the person said.