The economic collapse has claimed another victim — a Greenpoint condo project partly funded by former NBA great Magic Johnson has gone bankrupt.
The Lakers legend backed the Viridian — a glassy 130-unit building on Green Street — by loaning the builders $12.3 million through the Canyon-Johnson Urban Fund.
But the developers, whose plans called for a gym, pool, sauna, billiards room, virtual golf, and a library, filed for bankruptcy in the Eastern District Court of New York on Feb. 5 — before residents moved in.
Now Magic wants his money.
“[The Canyon-Johnson Urban Fund] is certainly focused on recouping the amount that it had lent,” said Steve Sugerman, a spokesman for the fund, which claims to be “the country’s largest private equity fund focused solely on the revitalization of American’s densely populated, ethnically diverse communities.”
Sugarman added that the case will likely go to bankruptcy court, where Johnson’s company will seek to reacquire its loan.
In hopes of generating some fast cash from their vacant building, which was recently appraised at $39 million, the bankrupt developers, the 110 Green Street Corporation, are hustling to turn their unsold condos into rental units, Crain’s reported.
But they may not get the chance. The building itself, which is between Manhattan Avenue and Franklin Street, is now on the market for $65 million through the brokerage Marcus and Millichap, according to Curbed, a real estate blog.
Calls to the developer, Marcus and Millichap, and brokers responsible for the property were not returned.
The Viridian hit the market in June — just months before the economic crash toppled the real-estate world. Some condos in the building are already in contract, but of the 49 units offered on the builders’ Web site, at least 33 units remain on the market. Prices range from one-bedroom condos starting at $430,000 to three-bedroom units going for as much as $810,000.
©2009 Community News Group
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