Development site up for grabs near the U.N.

Four loans with an unpaid balance totaling $18.75 million are up for grabs at a stalled development site near the United Nations that has the potential to become a new hotel or consulate, according to the Observer (note: clarification made). The loans, which are being marketed by David Schechtman of Eastern Consolidated, are secured by the retail, residential and commercial properties at 844 Second Avenue, 302 East 45th Street, 303 East 44th Street and 304 East 44th Street. Plans for a high-end hotel or consulate there never got off the ground because of the tight construction market, but the current owners did consider moving air rights from the Second Avenue and 45th Street properties to the two on 44th Street to create nearly 75,000 square feet of development rights. The loans expire next January and have a 7 percent interest rate. [NYO]