[EVG file photo]
Developer Gregg Singer, who has spent nearly 18 years trying to convert the former P.S 64 and CHARAS/El Bohio community center into student housing, is now reportedly being sued by his investors.
The Real Deal has the scoop:
Investors in the long-stalled redevelopment of the former PS 64 in the East Village are trying to force the building’s sale, claiming their partner is bleeding them dry to line his own pockets with management fees worth $30,000 per month.
A trio of financial backers led by Los Angeles-based Onyx Asset Management is asking a judge to boot developer Gregg Singer as manager of project, alleging several conflicts of interest that have led to him “wasting and dissipating the assets” of the partnership, according to a lawsuit filed in Manhattan Supreme Court Wednesday.
The asset manager said it and the other investors put almost $8 million worth of debt and equity into the project, and after paying off the defaulted mortgage the development partnership took out a $22 million bridge loan at 11 percent interest, guaranteed by Onyx.
Despite earlier reports that Singer had signed the West Village’s Ballet School as a tenant, however, progress at the site struggled, and in July the company defaulted on the loan, kicking the interest rate up to 16 percent.
Singer bought the formerly city-owned building on East 9th Street between Avenue B and Avenue C in 1998 for $3.15 million. There has been a movement to return the building to use as a cultural and community center.
Previously on EV Grieve:
Rebranded P.S. 64 up for grabs: Please welcome University House at Tompkins Square Park to the neighborhood
Deed for 'community facility use only' at the former P.S. 64 now on the market
Efforts continue to fight the dorm planned for the former PS 64 on East 9th Street
Testimony Of Councilmember Rosie Mendez regarding the former PS 64
[Updated] At the 'Save Our Community Center MARCH AND RALLY'
Landmarks Preservation Commission asks to see modified plans for former PS 64
The Landmarks Preservation Commission approves application for modifications at PS 64
'Misinformation' cited as DOB issues Stop Work Order at the former PS 64; community meeting set for Sunday afternoon
Development drama continues at the former P.S. 64, where the city approved dorm-conversion permits (again)
[Updated] The former P.S. 64 appears to be for sale