Long-delayed Sunset Park development site faces seizure and sale – Commercial Observer
Watermark Capital Group And Maguire Capital Group may not be able to get a long-delayed construction project in Sunset Park, Brooklyn, underway.
On Wednesday, credit service providers Rialto Capital Group Lawsuit filed In Kings County Supreme Court for enforcement on the parking lot at 6128 Eighth Avenueand is considering seizing and selling the site after the two developers allegedly defaulted on a $45.3 million loan tied to the property.
Spokespeople for Rialto, Watermark and Maguire did not immediately respond to requests for comment. Story was first reported from Crain’s New York store.
The loan was made in January 2023 by the now-collapsed Signature Bank, but the lawsuit alleges that the developers stopped making mortgage payments in December 2023, specifically naming Watermark Founders. Wolf Landau And Meir David Tabak.
Watermark and Maguire planned to build a 28-story, 497-unit project on the site, including apartments, medical offices, a grocery store and parking. They were the third company to attempt to develop the property.
MSK Properties initially wanted to build a single 11-story tower and a Home Depot on the site, but the company sold the property to a group of investors in Great Neck, Long Island, for $52 million in 2014.
The developers from Great Neck have tried again on the site and ambitiously planned for three towers that would house offices and a hotel, The only true But in 2021, they began selling the property to Watermark and Maguire for $12 million, city records show.
Watermark and Maguire were given the green light for the property two years ago when the Department of Urban Planning said the developers did not need special permission for the project.
Despite protests from residents of the Brooklyn neighborhood who argued that the property needed to be subject to public review because it had been used as a freight yard in the early 1960s, the Planning Department gave the developers the green light.
You can reach Isabelle Durso at [email protected].
