The 3.6-acre waterfront plot near Citi Field in Queens that was reported to be in default by The Real Deal is guaranteed by 75 co-op units in Midtown Manhattan.
According to the New York Daily News, lender U.S. Bank is seeking the highest bid for the mortgage it provided to Abs Flushing Development for the site, at 39-08 Janet Place. The new owner will also take control of the co-ops at 310 East 55th Street.
“The land and the co-ops and personal guarantees are worth well more than $36 million,” said David Schechtman, the Eastern Consolidated executive managing director handling the mortgage sale. “A small city can be built there.”
Developers won’t have trouble getting community approval for a project on the developable land, across the Flushing Creek from Willets Point. Community activists want something built on the site that would further boost nearby downtown Flushing, although they’d prefer the waterfront to be left open to the public.
As The Real Deal noted, the site was initially slated for a gated residential community before Abs bought it in 2006. It defaulted on the loan in November. [NYDN]