Lender's strike threatens huge Queens project
Crain's New York reports: A dispute among lenders could soon halt construction of Sky View Parc, one of
New York's biggest projects, throwing nearly 400 workers off the job.
The conflict over Muss Development's 3.3 million-square-foot retail and
residential complex in Flushing, Queens, surfaced two months ago, when Arbor
Realty Trust stopped paying monthly advances on its portion of the loan,
according to sources close to the matter. Fearing that other lenders would also
stop making payments, Muss ponied up about $4 million to cover Arbor's
share. The situation reaches a key juncture this week as lenders are slated to release
their next portions. With Arbor showing no sign of resuming lending and Muss
reluctant to dole out more cash, a crisis looms.
Muss' predicament underscores that no developer is immune in this environment as
many lenders seek ways to wriggle out of honoring their pledges. At least 16
projects in the city—including hotels, apartment buildings and malls—are in some
sort of distress, according to research firm Real Capital Analytics.
“For lenders, condo has become a four-letter word,” says Dan Fasulo,
managing director of Real Capital Analytics. “And Flushing isn't Manhattan [or]
the Brooklyn waterfront.”
View the full article on Crain's New York: Lender's strike threatens huge Queens project
Posted by: Matthew Stone