Posted on 12/13/2008 6:24:28 AM PST by NRG1973
An Israeli mortgage lender has started foreclosure proceedings against Symphony Place the modern section of the former Hotel Syracuse where construction work has stalled just short of completion of a project to renovate it into upscale apartments.
Apartment construction was 80 percent finished when work stopped in September. The project owners were trying to raise more money to finish the job when the foreclosure was filed, said project manager Mark Belanger, the local representative for the Israeli owner of the property.
Perfect Provident Fund Ltd., which holds a $10 million mortgage on the 15-story property, said in foreclosure papers that building owner GML Tower LLC defaulted on the mortgage by racking up more than $3.7 million in mechanic's liens that have been filed by contractors seeking to get paid.
The building owner also defaulted by failing to stay current on property taxes, according to the foreclosure papers, which were filed last week in state Supreme Court in Syracuse.
GML Tower is principally owned by Ameris Holdings Ltd., of Israel. Levy Kushnir, of Tel Aviv, is chairman, and his son, Elad, is chief executive officer.
In addition to the tower building at 111 E. Onondaga St, at South Warren Street, the foreclosure proceeding includes the Addis building, at 449 S. Salina St. That's a vacant, five-story structure formerly owned by the Addis Co.
The foreclosure does not include the historic section of the Hotel Syracuse, at 500 S. Warren St., which was not included as collateral on the mortgage. The old hotel is owned by another company affiliated with Ameris Holdings, GML Syracuse LLC.
(Excerpt) Read more at syracuseonline.com ...
I’d say it actually started about this time last year. I live in “converted to upscale condo”-ville. (We jokingly call our older smaller, building the servants quarters)
There has been a six unit building finished since last November and ONE unit has sold. A 25-unit building looks like it has one resident and I asked a real estate friend to keep me posted when 50% have been sold.
When the first two tear-down/conversions were made (8 units each), they were presold before the buildings were finished. That was 2003-2004.
LOL, ask Mr. Empty pockets Donald "bad Hair" Trump, when it busted!!!
I do agree with the sentiment regarding looming -- if not ongoing -- trouble in the commercial real estate market, though.
In what part of the country do you live?
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