Two Bridges Towers Development Halted Again After Developer Defaults on Small Loan

Big news from down south came about a month back - the wall of blue-grey skyscrapers set to be built adjacent to the Manhattan Bridge won't be coming anytime soon.

New York developers The Chetrit Group defaulted on their $8 million loan and their site at 265-275 Cherry Street is now going to the auction house.

It's a complex story with many moving parts, so I've decided to include a couple of the most important quotes from news articles covering the story and opposition groups celebrating the news. There aren't many.

From The Real Deal
"The Chetrit Group defaulted on an $8 million mezzanine loan it used to finance the acquisition of the development site at 265-275 Cherry Street, The Real Deal has learned. In 2018, the City Council and then Manhattan Borough President Gale Brewer filed a lawsuit claiming that the de Blasio administration erred in finding the towers could be built without City Council approval. That case was finally decided in the developers’ favor in 2021."

From the Commercial Observer
"As part of the foreclosure process, Madison can make notice of the default and head straight to an auction, with the winning bidder taking over Chetrit's property as well as the mortgage and mezzanine loan, the source said. All bids must be submitted by Nov. 18…"

From District 1 Councilmember Chris Marte
Council Member Chris Marte said: “Today is a testament to the will of the people…It’s a major win for our neighborhood, for our city, because soon enough, we’re going to see other communities come to us and say ‘how did they do that in Two Bridges, in the Lower East Side?”

From Youth Against Displacement
"Chetrit’s surrender is the latest victory in our community’s years-long fight against the megatowers. By organizing with Two Bridges residents, neighbors from the Lower East Side and Chinatown, as well as workers, students and small businesses who are a part of these communities, we have proven that a unified community can triumph over the greed of billionaire developers. If built, these towers would damage the structure of two adjacent buildings that provide affordable housing, and threaten the health and safety of their residents — as well as drive up real estate taxes and rents in the surrounding area. Since the luxury megatowers were proposed in 2017, multiple developers have taken over the project only to abandon it, due to consistent community organizing against displacement."

I'm no private investigator, so I cannot independently verify any claims made above.

Thank you for reading!