Will the foreclosure auction of developer Greenland USA's rights to six development sites over the Vanderbilt Yard, announced for Jan. 11 and postponed until Feb. 12, actually happen on Monday?
Unclear.
Two days ago, I queried representatives of the developer and of Empire State Development (ESD), the state authority that oversees/shepherds Atlantic Yards/Pacific Park, but I haven't yet gotten a response.
After all, it's unclear whether any developer would want to pay (something) for the EB-5 debt, without knowing whether and how much it would owe for the obligation to build 876 (or 877) units of affordable housing by May 2025.
And while ESD CEO Hope Knight told legislators that they're seeking a new developer, she didn't share details or express much optimism.
So it could be postponed again.
The immigrant investors put up $349 million under the EB-5 investor visa program, in which they typically forego interest because they prioritize getting green cards--but expect their money back. A little more than $63 million was repaid, so the debt is more than $285 million.
But there's ample evidence that the collateral--those six tower sites--is not worth that much. And that's before factoring in the liquidated damages of $2,000/month for each missing unit.
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