Flushing Condo Saved by Investor Before Hammer Comes Down

April 10, 2015 — Talk about getting saved in the nick of time. The owner of Shirokia Tower, a condo in Flushing, Queens, facing foreclosure, was about to see the building auctioned off. Nearly 100 investors showed up ready to place their bids. All of them went home disappointed, reported the New York Daily News, after "a big time real estate investor… salvage[d] the project." Madison Realty Capital really wants to tap the Flushing market. To that end, it seized its chance, providing a "$14 million mortgage to recapitalize Shirokia Tower, allowing the owner of the property to hang on to it." Things seem to have worked out for this Queens condo, thanks to its "white knight." But buildings can end up in financial difficulties for a variety of reasons, one of them being sponsor defaults — if that's the case, then relying on a so-called white knight might not be the best solution.