New York Development Site To Hit Auction Block With $39M Lien

23/04/2013 2:10 am

A development site in Long Island City, New York is expected to hit the foreclosure auction market next month with an outstanding lien of $38.54 million.

The Real Deal reports that the residential development site, at 44-30 Purves Street, was formerly controlled by developer Baruch Singer and investor David Weiss, who financed a residential project at the site in 2006 with a $13M loan from G3-Purves Street LLC, an entity which  reportedly is linked to Goldman Sachs.

After the developer broke the terms of their non-recourse loan agreement by failing to pay $90,000 they owed in real estate taxes and other liens on the property the lender filed for foreclosure late last year.

Baruch and Weiss acquired the property for $9 million in 2006, public records show. The duo also appears to have purchased an adjacent site for $5 million; that site is subject to the same foreclosure action.

With 214,792 buildable square feet, the lot could support a residential development of between 200 and 250 units. The Real Deal reports that the area is quickly becoming a hot spot for the development of new rental towers.