39-unit LIC condo project with $18M debt files for bankruptcy

The owner entity affiliated with a 39-unit Long Island City condominium development originally led by Barry Leon filed for chapter 11 protection for the single-asset real estate property, located at 25-12 and 25-16 37th Avenue in Long Island City. The property is in foreclosure litigation.

The signatory for the entity was David Goldwasser, but the original borrower and developer was Barry Leon. Goldwasser, of  GC Realty Advisors, acquired control of the property through a UCC foreclosure auction. The property has assets between $1 million and $10 million and debts totaling $18.44 million, composed of a $12.7 million first mortgage, a $3.3 million mezzanine loan held by SKW Funding, contractors and others, according to the filing.

The former lender, Popular Bank, filed to foreclose on the $17.5 million building and project loans in 2020, as PincusCo reported at the time. That case is ongoing. The project is beset with litigation, including a mezzanine lawsuit, a contractor lawsuit, neighbor-related litigation and more.

The property has a foundation but construction is not beyond that.

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