Uniondale Marriott foreclosure sought by lender
Lenders are seeking to foreclose on the Long Island Marriott Hotel and Conference Center in Uniondale, owned by New York Islanders owner Charles Wang, and a court date for oral arguments in the case will be set next week, according to a New York State courts spokesman.
The 618-room hotel is the largest on Long Island.
The lenders of a $103-million loan, taken out by the hotel in 2007, filed for foreclosure in July after the hotel missed a February payment. A special servicer, which works to restructure troubled debts, had sent two notices of default to the hotel in February and May, according to documents filed in NY State Supreme Court in Mineola.
In May, the total sum owed was more than $125 million, court documents say.
A lawyer for Wang and a representative for the Uniondale hotel were not available for comment late Friday, but in court documents Wang contests the foreclosure effort.
The hotel was valued at $63.4 million in an April appraisal, according to Bloomberg data. In 2010, it had been valued at $152 million.
The Marriott, built in 1982, underwent a $22-million renovation in 2006. At the time, the Town of Hempstead's Industrial Development Agency approved a 10-year property tax abatement program for the hotel. If foreclosure is approved and the hotel is sold, the abatement will not transfer, said Fred Parola, executive director of the Hempstead IDA.
Wang first purchased the Marriott in 2005 to bolster his Lighthouse plan to revitalize the area around the Nassau Coliseum. In 2007, the hotel was bought by Scott Rechler of RXR Realty, who partnered with Wang on the project. After the approval process for the Lighthouse project stalled and fell through, Wang bought the hotel back.
Wang later sought a Nassau County-funded renovation for the Coliseum, but voters rejected the project. The Islanders then announced in 2012 that they were moving to Brooklyn.
Last year, developer Bruce Ratner was selected by the county to renovate the Coliseum.