From LIQCity: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.
8 comments:
Banks have enough worthless land.
A W hotel to be built in the vicinity of the Queensbridge projects?
The investors in the funds / deal should sue the rain maker for incompetence and they themselves should have their names placed on a list in a daily newspaper declaring themselves as idiot investors with too much money!
This is FANTASTIC news....suing the moron developers.
They put up a personal guarantee they should pay up or go BK. Screw em....why should they get off without paying their debts.
Now maybe we can build affordable housing like 1 bedroom condos for $99K so someone making $15 hr can really afford them..
Oh boo-hoo! Why don't we here at QC pass around the hat to get this project back on track? There still aren't enough hotel rooms in Dutch Kills to satisfy all the demand for them.
Build a glass tower for more WASP trust fund children to move into so that they have some place luxurious to retreat to after sitting in Starbucks all day talking about how to make the world a better place.
Dutch Kills is messsed up and exhibit A of a community taken advantage of, from their local 'talent', electeds, breathless news accounts of development, to Penny Lee of Shitty Planning (who should be sent out to Bismark NC to help them plan for their mass transit system - cant do too much damage there!)
A deed in lieu of foreclosure?
Only an idiot would take that deal in this market it will take 10 years if not more for that property value to come back.
I think both the developer and the bank should take the hit and they will! That site isn't worth shit now and the bank paid out all that money and I bet the contractor walked away with a good portion of that cash in his pocket!
I love it when the bank and the contractors get screwed!!!!
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