Last week, hijinx at the Pencil Factory on West Street?the condo conversion of two old Greenpoint industrial buildings mixed with a newly-constructed structure?came to light. Building permits posted at the site went missing, work appeared halted and we couldn't reach anyone at the sales office. The Real Deal got hold of one of the project's designers at Daniel Goldner Architects, who said the work stoppage is temporary while the owners change contractors. Mystery solved! Eh, not quite.
A Greenwich Village-based financial services firm called Aristone Capital Funding is suing the Pencil Factory's developer, notorious landlord Baruch Singer, to get its $6.68 million loan back, arguing that the Pencil Factory missed its January 19 completion deadline. And how! The loan is a small drop in the bucket of the project's total financing (there's also a $36.5 million senior loan on the development from an Israeli bank), but the issues don't stop there. The owners are reportedly also debating whether to turn the 93-unit building into a rental. Or, to sum this whole situation up in two words: Oy vey!
· Baruch Singer Defaults on Multi-Million Dollar Brooklyn Loan [Real Deal]
· Magic Marker Spells Trouble at Greenpoint's Pencil Factory [Curbed]