Investors sue Flushing developer over LES dev site deal

Owners claim Xingmei Chen failed to close $29.5M contract at 208 Delancey

TRD New York /
Sep.September 29, 2016 12:40 PM

A group of Lower East Side investors is suing a developer from Flushing for allegedly failing to close on a $29.5 million contract for a Delancey Street development site.

The group of 53 investors who own the condominium development site at 208 Delancey Street claim Xingmei Chen of American Chengxing Investment failed to meet the May 5 closing date “despite being granted numerous extensions of time to consummate the transaction,” according to a complaint filed in Manhattan Supreme Court Wednesday.

The owners, dubbed the Delancey Bridge Tower Group, bought the former home of T&J Auto Repairs for $8.5 million 2011. They started construction on a 12-story, 69-unit condo building before a string of stop-work orders stalled progress at the site.

The group put the site on the market for $36 million last summer  and entered into a contract with Chen on Jan. 6, the lawsuit claims. The investors claim damages of no less than $2.2 million for the alleged breach.

Chen could not be reached for comment.

Earlier this year, New Jersey-based developer Mao Hua Dong sued Chen for allegedly refusing to honor a contract to sell a 38 percent stake in an a pair of properties at the edge of Downtown Flushing near the Sky Parc condominiums.


Related Articles

arrow_forward_ios
Seward Park development raises price of LES mixed-use property to nearly $8M

Seward Park development raises price of LES mixed-use property to nearly $8M

Seward Park development raises price of LES mixed-use property to nearly $8M
Placeholder image

Massive Seward Park development nears approval

Massive Seward Park development nears approval
Placeholder image

LES nightlife extends to Delancey

LES nightlife extends to Delancey
Placeholder image

Entrepreneurs hope to build city’s next green space underground

Entrepreneurs hope to build city’s next green space underground
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...