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Lender alleges Gary Segal defaulted at Opus Point in LIC

Columbia Pacific Advisors seeking $67M guarantee from Dynamic Star CEO

<p>Dynamic Star CEO Gary Segal and 23-10 Queens Plaza South in Long Island City (Getty, Dynamic Star)</p>

Dynamic Star CEO Gary Segal and 23-10 Queens Plaza South in Long Island City (Getty, Dynamic Star)

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  • A Seattle-based lender is suing real estate investor Gary Segal for allegedly defaulting on a $67.1 million personal guarantee tied to a commercial real estate loan in Long Island City.
  • The Columbia Pacific Advisors loan was originally $38.5 million in 2021 but increased to $56.9 million by March 2024, and Segal allegedly failed to repay it when it matured in August.
  • Columbia Pacific Advisors has also initiated a UCC foreclosure process with an auction scheduled for May 9.

A Seattle-based lender has filed a lawsuit against real estate investor Gary Segal, seeking more than $67.1 million for allegedly failing to honor a personal guarantee on a defaulted commercial real estate loan.

Columbia Pacific Advisors filed the complaint this week in New York Supreme Court, PincusCo reported. The lender claims Segal breached his obligations under a personal guaranty agreement tied to a loan for a Long Island City industrial warehouse, where an office development is planned.

Segal guaranteed a loan made in December 2021 to the entity that owns 23-10 Queens Plaza South, according to the complaint. The original loan amount was $38.5 million, but through several modifications, the principal allegedly increased to $56.9 million by March 2024.

The lawsuit claims Segal failed to repay the loan when it matured in August. Despite receiving a notice of default in October, neither the borrower entity nor Segal has made any payments toward the outstanding debt, which now exceeds $67.1 million including interest and fees, according to the complaint.

Columbia Pacific Advisors is seeking a judgment for the full amount due, plus ongoing default interest, legal fees and other costs outlined in the loan documents.

The lender initiated a separate UCC foreclosure process on the ownership interests in the borrowing entity. An auction is scheduled for May 9.

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Columbia Pacific Advisors did not immediately respond to a request for comment from The Real Deal. Segal could not be reached for comment. 

Two years ago, the City Council passed a zoning change that would allow Segal’s firm, Dynamic Star, to develop a 400,000-square-foot office building at the site, dubbed Opus Point. Segal purchased the property in 2019 for $27.5 million.

Long Island City is not the only place where Dynamic Star is putting out alleged financial fires. This year, a joint venture of Blackstone and Rialto Capital filed a pre-foreclosure action, alleging Dynamic Star and Namdar Realty Group defaulted on a loan for the Fordham Landing site in the Bronx.

The lender is seeking a receiver to oversee the site while pursuing a forced sale.

Holden Walter-Warner

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Dynamic Star's Brad Zackson; 23-10 Queens Plaza South (Queens) and 301 West Fordham Road (Bronx) (Google Maps, Dynamic Star)
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23-10 Queens Plaza South, Gary Segal and Justin Ehrlich (Credit: Google Maps)
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