The mortgage holder on the AM&A’s property has started foreclosure proceedings on the developer working to convert the project into a Wyndham Hotel. The Buffalo News reports Apollon Groups’ New Horizons Acquisitions is seeking to seize the building from developer Landco after it failed to pay off the mortgage in early November as required.
From The News:
Apollon, based in Roslyn Heights, N.Y., owned the 10-story complex at 377 Main St. before selling it to the Queens-based Landco in November 2014 for $2.775 million. It then extended Landco a $2.175 million mortgage, at 5 percent interest, with a personal guarantee by Lily Li, then the leader of the Landco group.
But a condition of the mortgage said that Landco would pay principal and interest of $14,354.04 per month until Nov. 6, 2018, “when the whole of the said principal sum and interest then remaining unpaid shall be fully paid.” That date was not extended, according to the foreclosure documents, and the loan is “due and payable.” And the interest rate now jumps to at least 16 percent.
Work on the project has been sporadic but after a lengthy asbestos removal effort, construction was said to be on track. Landco’s $70 million plan called for ground floor retail and restaurant space, 40,000 sq.ft. of banquet facilities, and a 340 room Wyndham Hotel. The building has been vacant since 1999.