A prime 3.75-acre plot in downtown Flushing, overlooking the Flushing River, that was to become a major mixed-use development is in the first steps of foreclosure.
The site, at 39-08 Janet Place, off Roosevelt Avenue, was to become the first residential condominium with a hotel, office and retail space on the river.
But The Real Deal, which reports on New York City real estate news, announced last week that U.S. Bank National Association in Ohio has filed a lis pendens — the first step in the foreclosure process —against the project’s owner, Abs Flushing Development.
The lender claims Abs owes the bank $36 million, which it loaned to the developer in 2009. Attempts to reach officials at Abs were not successful.
The waterfront property has had several owners. Abs purchased the site from the Vintage Organization in 2006 for $26 million and prior to that it was going to be built by the Lev Development Group.
Called River Park Place, the development was to have included three residential towers with 450 condos and two low-rise commercial buildings.
Claire Shulman, president of the Flushing, Willets Point, Corona Local Development Corp., said she never thought the Janet Place project would get off the ground, due to the economy and construction costs. “It’s valuable property,” Shulman said, “and is zoned C4-2, which allows for both residential and commercial space.”
Marilyn Bitterman, district manager of Community Board 7, said the project is as of right so the board had no involvement, although members were aware of the plans.
Chuck Apelian, vice chairman of CB 7, said he believes the zoning doesn’t allow for as much bulk as the project called for. “I don’t understand why it was as of right,” Apelian said.
Shulman pointed out that she has been talking to the Department of Environmental Protection about dredging the river near the Janet Place plot, which would be a plus for future development.