Dermot Company executives threatened with foreclosure on Battery Maritime Building

Developer is facing two suits for defaulting on loans and rent

New York /
Nov.November 17, 2016 10:40 AM

Dermot Company, the developer behind the long-mired redevelopment of the Battery Maritime Building in Lower Manhattan, is facing two lawsuits and threats of foreclosure.

The EB-5-focused New York City Regional Center, which provided Dermot with $77 million in loans in 2011, is threatening to foreclose on the landmarked property, Politico reported

Earlier this month, the New York City Economic Development Corp, which owns the site, filed suit against the developer for allegedly defaulting on its rent for more than a year. According to court documents, the Dermot affiliate that controls the 99-year lease-hold on the property owes the city more than $1.2 million.

Dermot is already facing a suit from the regional center, which manages funds on behalf of EB-5 investors and sued Dermot for failure to pay rent or interest on its loans in September, as The Real Deal reported.

The redevelopment of the 140,000-square-foot site has been dragging for decades. Dermot together with the Poulakakos family took on the project in in 2007 with plans for a shopping center, boutique hotel, rooftop restaurant, and the restoration of the building’s Great Hall.

Dermot didn’t sign the lease until 2012, and then damage from Superstorm Sandy and ballooning costs mired the project further than its initial $110 million price tag.

Dermot was in talks with both Stoneleigh Capital and Steve Witkoff earlier this year about potentially taking over the property, but neither of the deals came to fruition. [Politico]Chava Gourarei 


Related Articles

arrow_forward_ios
Clockwise from left: 950 University Avenue in the Bronx, 27-55 Jackson Avenue in Queens, 149 Pioneer Street in Red Hook and 416 Metropolitan Avenue in Williamsburg (Google Maps)

EB-5 investor snags Hunters Point resi development: Mid-market sales report

EB-5 investor snags Hunters Point resi development: Mid-market sales report
Jeff Blau and Hudson Yards (Getty, WIkipedia)

Hudson Yards’ EB-5 investors demand arbitration with Related

Hudson Yards’ EB-5 investors demand arbitration with Related
Related's Stephen Ross and Jeff Blau with Hudson Yards (Getty, iStock, Wikipedia Commons)

EB-5 investors to Related Companies: Open your books

EB-5 investors to Related Companies: Open your books
Stephen Ross and Hudson Yards (Getty, iStock)

Related halts payments to Hudson Yards EB-5 investors

Related halts payments to Hudson Yards EB-5 investors
Michael Halloran

EB-5 fund administrator sells amid push to resurrect program

EB-5 fund administrator sells amid push to resurrect program
(Credit: iStock)

EB-5 is back in the doghouse

EB-5 is back in the doghouse
EB-5 could be brought back to life (Credit: iStock)

Could a pandemic bring EB-5 back to life?

Could a pandemic bring EB-5 back to life?
President Donald Trump (Credit: Drew Angerer/Getty Images; iStock)

In a bid to boost the economy, Trump may give new life to EB-5 program

In a bid to boost the economy, Trump may give new life to EB-5 program
arrow_forward_ios

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

Loading...