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Sky View Parc Hit By Lender Woes
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Sky View Parc in under construction in Flushing.
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By Joseph Orovic
It appears car buyers and mortgage seekers aren’t the only ones having trouble receiving money from lenders.
Forest Hills’ Muss Development has had a reported dispute with Arbor Realty Trust, a major source of funding for Sky View Parc, a 3.3 million square foot mixed-use complex in Flushing. Arbor reportedly stopped sending in monthly advances on its portion of a $75 million loan for the development, leaving Muss to foot the bill itself.
Neither side was willing to comment openly about the dispute. But a spokesperson for Muss allayed fears that construction of the complex would freeze if the dispute is not settled.
“We’re still on schedule for the first residential tower to open in the late summer, early fall,” he said.
Arbor offered a statement that read, “Arbor Realty Trust remains committed to the Sky View Parc project, and is in full compliance with its obligations under the applicable agreements. In particular, Arbor has provided all of the financing for which the appropriate conditions are satisfied.”
The aforementioned appropriate conditions are the source of the dispute. Previous reports said lenders often back out of deals on small glitches within the text of the loan.
But Arbor’s hesitant doling of money may come from a poor financial outlook. The company provided funding for another project on East 51st Street, the same location of a crane collapse last March. In the last year alone, Arbor’s stock has declined nearly 90 percent to a value of $1.33 as of printing.
Arbor has already given Muss half of the $75 million it has committed towards the project. The other sources of funding include Wachovia and Eurohypo HG.
Muss’ spokesman reiterated that discussions with all of the development’s lenders continue to resolve any issues.
As it stands, 130 units are under contract, but that leaves almost 1,000 more units unsold. A freeze of any construction may push back the move-in date of many residents.
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