Ponce Bank files $4.1M pre-foreclosure at stalled Flushing hotel development
$4.1 million pre-foreclosure filed at stalled hotel project at 136-25 41st Avenue (Credit - Google)
Ponce Bank filed a pre-foreclosure action against the owners of the stalled hotel development site at 136-25 41st Avenue in Flushing, Queens, alleging the $4.1 million loan provided in 2019 is now in maturity default.
The property owners, Hang Zhao and Wing Fung Chau, bought the lot in 2016 for $8.68 million, then in 2017 filed plans to demolish the existing building and also filed plans to build a 39-unit hotel. In 2019, Ponce Bank provided the $4.1 million loan which paid off most of a $4.4 million 2016 acquisition loan.
According to court records, “[T]he above loan, which matured on August 1, 2022 and, despite a previous agreement to extend the date within which you could satisfy the loan to November 1, 2022, has still not been satisfied and remains outstanding. PLEASE TAKE NOTICE that, as previously agreed, as a result of your failure to satisfy the loan by November 1, 2022, the interest rate being charged is the Default Rate [24%] calculated from August 1, 2022.”
According to Department of Buildings records, Hang Zhao of 136-25 41 Realty LLC submitted a new building construction project for a 39-unit, 22,906 square-foot hotel/dormitory/shelter (R-1) building at 136-23 41 Avenue. The plan was filed on October 25, 2017. It calls for the construction of an 86-foot tall, eight-story building and was filed with the New York City Department of Buildings under job number 421563640.
The block
On this tax block, PincusCo has identified the owners of 10 of the 110 commercial properties representing 280,867 square feet of the 722,250 square feet. The largest owner is Michael Xuewu Tang, followed by Hsueh Ying Wu and then Judson Realty Co.. On the tax block, there was one new building construction project filed totaling 22,906 square feet. It is a 39-unit, 22,906 square-foot hotel/dormitory/shelter (R-1) building submitted by Hang Zhao with plans filed October 25, 2017 and permitted September 22, 2020.
Direct link to the property’s ACRIS page and link to DOB NOW portal.