The
Wall Street Journal reports that the developer for Harlem's tallest tower at the corner of East 125th Street and Park Avenue will probably lose the property due to a default on the original $65 million loan for the land. Signs on the plywood out front state that the project which broke ground at the end of 2014 would be finished by 2015 but not much has happened on site besides the initial excavation. Financing for actually building the 32-story new construction appears to be the main issue here and skittish investors apparently are reticent in flooding the market with 680 units of expensive apartments. For now, 1800 Park Avenue will probably in limbo for some time and we would not be surprised to see new plans for the site in the coming year. The Journal does not have the full article available for non-subscribers but everything can be read on this blog:
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See the original rendering for this development in our past post:
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wow.. 680 units of people with money would have changed the game for that immediate area for sure! I hope they can get their financing together!
ReplyDeleteMore likely the property will go to the Durst Organization, the commercial developer that bought Continuum's notes (which are now in default). The fact that they came in and bought the debt and are moving to foreclose probably means they intend to do something with the site, but as Ulysses suggested it's entirely possible (and likely) that they will come out with new plans for the site. Given Continuum's inability to get financing, a change in ownership may be what is required to get the ball rolling again -- but it means delays no matter what.
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