The former P.S. 64 building in the East Village just can't get a break. A group of financial backers are suing developer Gregg Singer for allegedly pocketing money from the project and causing several delays, The Real Deal reports.
Singer purchased the school building in 1998 for $3.15 million, but despite 17 years having gone by plans to create a college dormitory for Cooper Union and the Joffrey Ballet School have come to naught so far.
Three financial backers led by Onyx Asset Management now want Singer to sell the property. The group allege in their suit filed in the Manhattan Supreme Court that Singer is reluctant to part with the property because he collects $30,000 each month in management fees, and that he refuses to get a broker to sell the property because he wants to make a commission from the sale.
The project has been plagued right from the start with the developer defaulting on several loans. In the summer it was reported that the Joffrey Ballet School had finally signed on as a tenant, but just a month later the Department of Buildings issued a stop work order due to the lack of a tenant. Singer's financial backers said they could no longer pony up funds without the promise of a tenant.
Located at 350 East 10th Street, the 152,000 square foot building was last valued at around $78 million, according to investors.
· Gregg Singer sued over stalled East Village dorm project [The Real Deal]
· Work Might Actually Start at Embattled Former P.S. 64 [Curbed]
· P.S. 64 Archives [Curbed]