A major New York City EB-5 regional center has filed suit against entities affiliated with Dermot Company for allegedly failing to pay interest on $77 million in loans granted for its planned redevelopment of the Battery Maritime Building downtown.
The New York City Regional Center, which manages funds on behalf of EB-5 investors, provided the developer with $77 million in loans in 2011 and claims the Dermot affiliates haven’t paid rent to the New York City Economic Development Corp. since March, or paid interest on the loans since July. They also haven’t paid taxes, insurance premiums, security fees, utilities and other expenses since July, the suit alleges.
Dermot holds a 99-year lease on the property and pays rent to EDC.
EB-5 investors paid $500,000 a piece to access the project in return for a green card. It wasn’t immediately clear if the lawsuit would impact their ability to secure citizenship.
Representatives for EDC, Dermot and the regional center did not immediately respond to requests for comment.
Read more by clicking below image