The Real Deal New York

Scarano project in LIC facing foreclosure

September 02, 2008 04:24PM
By Adam Pincus

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A 20-story condo building planned for Long Island City and designed by architect Robert Scarano is in foreclosure proceedings, a New York-based bank reported in its latest quarterly filings.

Brooklyn firm Rosma Development’s 120-unit project, known as Tower 56, is located a few blocks south of Court Square at 45-56 Pearson Street. Scarano’s plans for the 321-foot tall tower were first submitted in 2005, and a permit was issued June this year.

A neighbor and an employee of a neighboring property said they saw no signs of a foundation being built.

“Everybody likes to talk if somebody misses a payment,” Scarano said. “As far as I know no foreclosure is going on.”

The project owners, Tower 56 LLC, now owe $11 million on a mortgage secured in January 2005 from Intervest Bancshares Corporation, which is headquartered at Rockefeller Center.

The project’s site is on a dead-end street north of the Sunnyside Rail Yards and two blocks from the Scarano-designed Vere at 26-26 Jackson Avenue.

Intervest said in its June 30 quarterly report that the property, described as vacant land, was in foreclosure proceedings. As of March, the loan was in nonaccrual status (defined as being 90 days late or having stopped all payments).

Despite the financial troubles described by the bank, in June the owners signed an easement agreement with the city to allow the Fire Department to use a small portion of the property.

Calls to the developers and the bank were not immediately returned.

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