Scarano project in LIC facing foreclosure

Sep.September 02, 2008 04:24 PM

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.

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Jason Lee and 435 West 19th Street (Credit: Larry Ford, Google Maps)

West Chelsea’s Pool House condo project heads to bankruptcy auction

Angel Oak Cos. CEO Michael Fierman and Flagstar Bancorp Inc. CEO Alessandro DiNello (Credit: Angel Oak, Flagstar, iStock)

Mortgage market dries up for unconventional home loans

As banks demand more collateral and developers stop making mortgage payments, analysts expect a world of pain to befall debt funds, mortgage REITs (Credit: iStock)

Mortgage REITs, debt funds face catch-22 between banks, developers

LA County March home sales volume

“April is when the big problems kick in:” LA residential firms face reckoning

US Steel’s sprawling South Works site is about the size of Downtown Chicago. At left, Common, who wants to partner with developers on a mixed-use entertainment district there, and Dan McCaffery, whose vision for a 13,000-home community fizzled out. (Credit: Common by Paras Griffin/Getty Images; McCaffery via McCaffery Interests; aerial by Cushman & Wakefield)

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity