From The Real Deal:
A developer that sought to build a Starwood Aloft Hotel in Long Island City filed for Chapter 11 bankruptcy protection just over a month after its lender U.S. Bank won a $19.6 million judgment against it in state court.
The single-purpose entity Queens Plaza Development, based in Brooklyn, planned to build a 16-story hotel at 29-37 41st Avenue just north of Queens Plaza. However the weak economy made it impossible to get construction financing and the project stalled, papers filed last Wednesday in federal bankruptcy court in Brooklyn say.
"The debtor seeks the breathing spell of the bankruptcy process in order to… avoid any further state court litigation with respect to the property and to facilitate a sale of the property," in order to repay creditors, the papers say.
A real estate insider said the bankruptcy move could be a way to try and speed up the sale of the property [to anyone] through what can be a faster federal process compared to the drawn out foreclosure system in state court.
The bankruptcy papers provide an estimated value of Queens Plaza Development's assets at $11 million, made up almost entirely of the parcel of land. The company's liabilities were $16 million, which included secured claims of $15.6 million, the court papers said.
In April 2007, Queens Plaza Development borrowed $17.24 million for the purchase of the property, but was not able to repay the loan, the court documents indicate.
7 comments:
Upzone! Upzone! Upzone! eh George?
Isnt this the former site of the Long Island Savings Bank - one of the great New York interiors that should have been landmarked and turned over the the community as a center.
Instead the local 'talent' that calls the shots in this quarter is too stupid or venal to do something like that.
A great site now for a community garden.
The Carolyn Maloney Bike Rack Commuter Center.
The Long Island Savings Bank building should have been landmarked. A crime against humanity. I miss it DEARLY with its amazing clock tower.
The interior was magnificent. I remember my parents getting their mortgage there when I was I child. It gave the middle class community around here a better chance to buy 2 family homes since their interest rates were always kept to a minimum in order to give the working class a better life.
Amazing how times have changed
- for the worse.
I'm VERY GLAD this developer went tits up. "Instant Karma's gonna get you!". Now I only wish that land was given back to the community for something useful, which WILL NEVER HAPPEN AS LONG AS BASTARD BLOOMBERG IS STILL ON HIS GOLDEN THRONE.
Too bad John Lennon is no longer here when you need him the most in this city!!!
This first of many people.
The only thing propping up the real estate industry is infinite demand at the bottom with illegals pushing the entire market up on the demand side, and your taxes taken away from your services to provide developers with corporate welfare on the supply side.
Everything is on thin ice.
The first of many. The first of many.
This first of many people.
The only thing propping up the real estate industry is infinite demand at the bottom with illegals pushing the entire market up on the demand side, and your taxes taken away from your services to provide developers with corporate welfare on the supply side.
Everything is on thin ice.
The first of many. The first of many.
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