The Lightstone Group, the developer of the 700-unit rental project beside the Gowanus Canal, has a few other projects underway in New York, as well as a diverse portfolio scattered across the entire country. But just a few years ago, it was in serious financial trouble. Lightstone bought 700 hotels for $8 billion, then promptly filed for bankruptcy two years later. The company president is still tangled in a messy legal battle, and the experience has bad repercussions?mainly that some banks will never lend to Lightstone again, which could make obtaining construction loans a challenge. Ruh roh. [NYT; previously]
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