The Real Deal New York

Flushing condo developer files bankruptcy … again

Developer has filed for Chapter 11 three times on Shirokia Tower
By Kathryn Brenzel | December 12, 2016 05:15PM

142-28 38th Avenue

142-28 38th Avenue

If at first you don’t succeed, try, try again. And if that doesn’t work, keep declaring bankruptcy. Hong Qin “Sandy” Jiang, the developer of Shirokia Tower in Flushing, just filed for Chapter 11 bankruptcy on the project for the third time in two years.

Jiang filed for bankruptcy on Friday for 142-28 38th Avenue, a 23-unit condo building in Queens, according to documents filed in Brooklyn Federal Court. The developer plans to sell the property and use the profits to pay back its creditors.

This is the third time that Jiang has filed for bankruptcy with the threat of foreclosure looming. The developer first filed for Chapter 11 in late 2014, but Madison Realty Capital TRData LogoTINY temporarily saved the project from foreclosure with a $14 million loan. The developer later refinanced with an $18 million mortgage loan from W Financial and another $2 million mezzanine loan from hotel developer Sam Chang. But in July 2016, Jiang defaulted, causing her to file for Chapter 11 again in August.

“She just can’t stay out of bankruptcy on this property,” said W Financial’s managing partner David Heiden.

During the last bankruptcy proceeding, Jiang claims she acquired enough funds to pay off Chang. Chang, according to Friday’s filing, has maintained that his company can’t be paid until Jiang has also paid back W Financial. The latest bankruptcy filing is aimed at paying off all the developer’s creditors.

In the bankruptcy filing, Jiang states that she’s seen renewed interest in the property and believes selling it may be “the best course of action.”