The developer of a high-rise apartment house on the East Side of Manhattan where a construction crane collapsed in March, killing seven people, now faces foreclosure and the loss of the entire property.
Where Crane Fell, Foreclosure Looms
All work on the concrete hulk of what would have been a sleek 43-story tower at 303 East 51st Street ceased after the accident more than four months ago. City officials rejected the developer’s revised construction plans in June and revoked his building permit.
On July 25, the developer’s lender, Arbor Realty Funding L.L.C., began a foreclosure action in State Supreme Court in Manhattan against the developer, James P. Kennelly, for failure to repay $70.4 million in overdue project loans. Arbor is seeking to sell the property to satisfy the loans.