A highly anticipated but long-stalled hotel development on New York's Lower East Side is dealing with a new challenge: the threat of foreclosure.
The Real Deal reports that DAB Group, the owner of the 16-story Allen Street Hotel project (seen here in an architect's rendering), is facing a foreclosure suit from Maverick Real Estate Partners, which acquired a $5.5 million from Brooklyn Federal Savings Bank after DAB reportedly went into default. The loan's initial due date was June 1, 2008, with an optional extension to December 2008. DAB received an extension in August 2008 for a year, with the ability to request three six-month extensions through March 1, 2011.
According to a complaint filed in the Manhattan Supreme Court, DAB owes $7.96 million in unpaid loans, interest fees and other charges. Spokespersons for DAB and Maverick declined to publicly comment on the matter.
(Illustration courtesy of Edward Mills & Associates)
