- FORECLOSURE for defaulting on $7.5million loanLenders Blueberry Funding claim developer Sharif El-Gamal owes at least $7.5 million after 'repeatedly' missing mortgage payments
- The site was at one point due to be turned into an Islamic center which became known as the 'Ground Zero Mosque'
- A backlash saw El-Gamal pivot to constructing luxury condos which remain unfinished
By BETHAN SEXTON FOR DAILYMAIL.COM
PUBLISHED: 21:10 EST, 14 December 2023 | UPDATED: 21:10 EST, 14 December 2023
The 'Ground Zero Mosque' that sparked protests due to its proximity to the World Trade Center site after 9/11 is facing foreclosure for defaulting on a $7.5 million loan.
Developer Sharif El-Gamal's vacant lot at 49-51 Park Place faces repossession, along with his incomplete luxury condo tower at 45 Park Place.
The site garnered national attention when El-Gamal proposed building an Islamic center on the plot, just blocks away from where the twin towers once stood.
Following protests in 2010, the plans were shelved and the developer pivoted to constructing high-end condos.
But court filings state his company has 'repeatedly failed' to make payments, with lender Blueberry Funding requesting permission to foreclose the premises and sell it off.
The site which became known as the 'Ground Zero Mosque' is facing foreclosure for defaulting on mortgage payments totaling $7.5 million
The vacant lot just blocks from the World Trade Center was due to be turned into an Islamic Center by developed Sharif El-Gamal, sparking furious protests from the families of 9/11 victims
The demonstrations were met with counter-protests from anti racism activists who argued there is a right to religious freedom
Jeremy Doberman, who represents the lender, said the company had tried to negotiate with El-Gamal numerous times.
His company, Park Place Partners Development was sent a notice of default, which went unanswered according to the suit, that states he owes $7.5 million plus interest.
'There comes a time when people's assurances are no longer good enough and in order to get paid back, you have to take things to the next step,' Doberman told The Real Deal. 'This is what the legal filing represents.'
The lawsuit is seeking repayment of the debt, along with at least $10,000 in legal fees.
The outstanding debt appears to be significantly lower than the value of the site if it were to be developed.
El-Gamal first acquired the dilapidated building in 2009. The premises formerly housed a Burlington Coat Factory store and had been damaged by the fuselage of one of the hijacked planes.
The store's two selling floors were destroyed when the landing gear from one of the planes tore through during the attacks.
El-Gamal put forward plans for a mosque as part of a proposed 13-story Muslim community center, which would have included a swimming pool, gym, theatre and sports facilities.
His company, Park Place Partners Development was sent a notice of default, which went unanswered according to the suit, that states he owes $7.5 million plus interest.
'There comes a time when people's assurances are no longer good enough and in order to get paid back, you have to take things to the next step,' Doberman told The Real Deal. 'This is what the legal filing represents.'
The lawsuit is seeking repayment of the debt, along with at least $10,000 in legal fees.
The outstanding debt appears to be significantly lower than the value of the site if it were to be developed.
El-Gamal first acquired the dilapidated building in 2009. The premises formerly housed a Burlington Coat Factory store and had been damaged by the fuselage of one of the hijacked planes.
The store's two selling floors were destroyed when the landing gear from one of the planes tore through during the attacks.
El-Gamal put forward plans for a mosque as part of a proposed 13-story Muslim community center, which would have included a swimming pool, gym, theatre and sports facilities.
Blueberry Funding, which lent the money to developer Sharif El-Gamal's company, is seeking the right to repossess 49-51 Park Place, along with an incomplete luxury condo tower at 45 Park Place
The site has a rocky history dating back to when it was first acquired by El-Gamal in 2009 who obtained permission to build a mosque despite the fierce backlash. Pictured: Leaders from various Muslim organizations at a press conference in front of the proposed site of mosque near Ground Zero on September 20, 2010
Today the site remains vacant except for a construction crane. El-Gamal decided to pivot to building luxury condos at the site in the wake of the protests which remain unfinished. However, the businessman remains positive about its prospects and teased 'big announcements' for the property
Construction was due to begin on September 11, 2011 - the 10th anniversary of the attacks.
The plans were divisive, with some 9/11 victims' families branding the proposals insensitive, while others stressed the need for religious freedom.
Protests against the construction were met with anti-racism demonstrations.
At some point amid the furor, El-Gamal quietly shelved the plans and, in 2014, began to develop luxury condos.
Plans for a scaled-down Islamic center stalled due to a lack of benefactors and funding.
Today, the 4,700-square-foot lot is only home to a construction crane, with the proposed condos unfinished.
But El-Gamal remains positive about the project's completion next year after recent success in a foreclosure lawsuit initiated by Malaysia's Maybank.
However Maybank's $170 million position was recently acquired by MSD Partners, which has ramped up the battle to foreclose 45 Park Place.
In a recent email, El-Gamal teased forthcoming 'big announcements' for the embattled project, the New York Post reports.
Any developments will be running in tandem with his ongoing foreclosure battles, including at Margaritaville, his Times Square hotel.
Construction was due to begin on September 11, 2011 - the 10th anniversary of the attacks.
The plans were divisive, with some 9/11 victims' families branding the proposals insensitive, while others stressed the need for religious freedom.
Protests against the construction were met with anti-racism demonstrations.
At some point amid the furor, El-Gamal quietly shelved the plans and, in 2014, began to develop luxury condos.
Plans for a scaled-down Islamic center stalled due to a lack of benefactors and funding.
Today, the 4,700-square-foot lot is only home to a construction crane, with the proposed condos unfinished.
But El-Gamal remains positive about the project's completion next year after recent success in a foreclosure lawsuit initiated by Malaysia's Maybank.
However Maybank's $170 million position was recently acquired by MSD Partners, which has ramped up the battle to foreclose 45 Park Place.
In a recent email, El-Gamal teased forthcoming 'big announcements' for the embattled project, the New York Post reports.
Any developments will be running in tandem with his ongoing foreclosure battles, including at Margaritaville, his Times Square hotel.
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