An article in The Real Deal posted yesterday warns that the Clarion Uptown Lofts at 225 East 111th Street may foreclose soon, due to a $4,870,000 foreclosure suit filed by the construction lender Community Preservation Corp.
The lot, which measures 25′x 100′, was purchased by Clarion Uptown Lofts LLC back in February 2007 for $1,400,000. Clarion proceeded to receive $800,000 and $2,944,000 from the Community Preservation Corp that same year. Those loans, totaling $3,744,000 were modified in 2010 when another construction loan for $625,000 was given.
All the while, 8 of the 12 units went into contract through listing broker Prudential Douglass Elliman. None of the units have been able to close, however, as the building was never able to receive a certificate of occupancy even though the owners signed completion guarantees. The bank claims that $4.87 million (including interest) has been due since November 2011.
All of the buyers should expect to receive a refund of their contract deposits after a right of rescission is filed with the Attorney General.
The Clarion Uptown Lofts at 225 East 111th Street.