The Real Deal New York

Queens development site loan comes with 75 Manhattan apartments

February 27, 2012 02:30PM

In a strange twist, a Queens development site comes with a free gift — 75 sponsor units in a Manhattan residential co-op, Crain’s reported.

The buyer of the defaulted loan for a 3.7-acre development site in Flushing, Queens, near Citi Field, will also get 75 apartments at 310 East 55th Street, because the apartments were used as collateral for the loan. U.S. Bank National Association made the loan to ABS Flushing Development in 2006, Crain’s said. Crain’s didn’t know the size or value of the apartments at press time.

A team from Eastern Consolidated that includes Marion Jones, David Schechtman, Peter Hauspurg, Lipa Lieberman and Ety Lee is marketing the loan, for which foreclosure proceedings began earlier this month. Sources said the borrowers have made personal guarantees on the loan, which could make them particularly interested in settling quickly, as their personal wealth could be forfeited in proceedings, Crain’s reported. [Crain’s]