Looks like the hotelification of Long Island City is experiencing a hiccup… one of the more prominent hotels planned for Queens Plaza has been Starwood Capital’s ‘W Hotel’ offshoot ‘Aloft’, which is now officially in foreclosure, and worse:
The developer, Queens Plaza Development, filed plans to build a 16-story hotel at 29-37 41st Avenue in Queens Plaza near the Queensboro Bridge, Department of Buildings documents show. Last year, Starwood’s Web site identified the 249-room project as By the Bridge, with an opening date of Dec. 31, 2010, but that information is no longer available on the site.
The loan went into default in October 2008, and the bank sued in April 2009 for the loan and the guarantee. The defendants said, according to court papers, that the bank should simply take the property back in a deed-in-lieu of foreclosure action, but the bank refused, instead pursuing the money directly instead of the property.”
And the NYS Supreme Court sided with the bank. Ouch.