Cape Advisors Buying Disputed Astoria Development Lot For $85M

30-77 Vernon Blvd.

Criterion Group is trying to sell a development site in Astoria, but its debt broker and one of its lenders are suing it for not following through on its original construction plans.

Bassuk Organization and Greystone EB-5 are suing Shibber Khan’s Criterion, arguing that the developer reneged on almost $230M in construction financing that the brokers had arranged, The Real Deal reports. Criterion is under contract to sell the site to Cape Advisors for $85M, according to the suit.

Bassuk secured a $215M loan from Mack Real Estate Credit Strategies, according to the lawsuit, for Criterion to build 711 residential units on the full-block waterfront site at 30-77 Vernon Blvd. Greystone’s EB-5 division also locked down $14M in funds, they claim.

Bassuk and Greystone allege that, while they were securing the financing, Khan was actively shopping the site. They further allege that entrepreneur David Lubinitsky, an investor in the project, was quietly working alone to market the site.

Greystone EB-5 said Cape Advisors Managing Partner David Kronman called the firm in November and said the company “was evaluating a potential acquisition of the project site and that Khan had authorized him to contact Greystone EB-5.”

Khan told the firm, however, he was not marketing the lot. The brokers want a $5.5M breakup fee, saying the commitment from Mack ran out at the end of 2017.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Federal Government To Sell Nearly 31K SF In Five Points: The Denver Deal Sheet

Avison Young Had Assets Frozen By Bank Over Unpaid Taxes

Artificial Intelligence Companies Reshaping Dublin Office Demand As OpenAI Confirms HQ

Mars Factory Overhaul Stalls As Candymaker's Chicago Expansion Accelerates

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

How Long Island Projects Can Cut Through Red Tape And Community Opposition To Cross The Finish Line

Empire State Building Observation Deck Hemorrhaging Visitors, Value

Cortland, Pulte, INVH, Walker & Dunlop Execs Talk Changing Demographics, AI

America's War Machine Is Growing, Sparking A Defense Real Estate Boom

Boca Raton's New Leaders Throwing 'All Kinds Of Curveballs' At Developers

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner