Back in March we reported that the Allen Street Hotel put itself on the market for what we now know to be $39,000,000, according to Bowery Boogie. Well know we know why the rapidly rising hotel was eager to sell before construction was even complete, it looks like the place is facing foreclosure. The Real Deal says:
Maverick acquired a $5.5 million note from Brooklyn Federal Savings Bank, after DAB, a Valley Stream, N.Y.-based developer, allegedly went into default, according to the complaint filed July 1 in Manhattan Supreme Court. On March 23, the lender advised DAB that it would no longer extend the loan at the site, at 139 Orchard Street, then sold the debt to Maverick Real Estate, which acquired the note through an entity called Orchard Hotel.
The developers allegedly incurred further default as millions of dollars of mechanics liens were filed against the property by unpaid contractors, and the group insurance policy at the property was canceled. As of June 17, the developers owed $7.96 million in unpaid loans, interest fees and other charges, according to the complaint.
Well, we wouldn't be surprised if an international buyer came to the rescue.
· Allen Street Hotel Project Faces Foreclosure [TRD]
· Allen Street Hotel Facing Foreclosure [Bowery Boogie]
· Allen Street Hotel Coverage [Curbed]