Flushing condo developer files for bankruptcy … again

W Financial and Sam Chang are mezzanine lenders on 23-unit Shirokia Tower

Aug.August 17, 2016 02:17 PM

The developer of Flushing condo building Shirokia Tower filed for bankruptcy Wednesday, a little more than a year after Madison Realty Capital temporarily saved the project with a last-minute $14 million loan.

Sandy Jiang first filed for bankruptcy for the 23-unit, 53,255-square-foot building at 142-28 38th Avenue in late 2014, but a foreclosure auction was called off when Madison threw the project a lifeline in April 2015.

A spokesperson for Madison Realty told TRD that the company is no longer a lender on the project as of this spring. The project’s current mezzanine lender is a partnership between W Financial and hotel developer Sam Chang, who lent Jiang an undisclosed amount last December.

The bankruptcy was filed on behalf Shirokia Mezz I LLC, whose sole member is Jiang.

“This is just the borrower’s latest attempt to delay paying back the money we loaned them and we expect that the courts will ultimately resolve this litigation in our favor,” W Financial’s managing partner David Heiden told TRD.

Property Shark currently lists the building, which sits a block away from the Flushing Commons megadevelopment, for sale.

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