At least 18 unpaid construction work claims worth nearly $3 million are the latest development in the saga of the stalled and contested Hyatt Place hotel project in Albany, NY.
With construction reaming stalled during the COVID-19 pandemic, subcontractors hired to work on the $30 million, 84,534-square-foot Hyatt Place hotel in downtown Albany have filed $2.7 million in mechanics lien claims against the developer and general contractor, The Pike Company, since April of 2020.
A mechanics lien is a tool that helps unpaid contractors get paid. The lien is placed against the property itself, and it can seriously hinder the serviced property’s sale or refinancing while the unpaid work claim is active against it.
The eight-story, 132-room hotel is located within Albany’s new $100 million Quackenbush Square development, which will house the Hyatt Place hotel, 14,000 square feet of retail space, and 134 apartments.
According to the Albany Times Union, the site of the hotel and its surrounding development had been vacant for several years as its property owner, Pioneer Companies of Syracuse, sought tax breaks and approvals for the project.
18 contractors owed $2.7M from Hyatt Place Hotel project in Albany
The 18 lien affidavits placed with the Albany County clerk’s office deem that 18 different subcontractors are owed a combined $2,781,208.64 for construction at the Hyatt Place hotel in Albany, located at 705 Broadway within the Quackenbush Square development.
Seven of the most recent lien claims alone total $894,742.52, six of which are filed directly against The Pike Company.
The most recent liens begin when on August 24, subcontractor R&S Steel filed a lien worth $444,830.91 after agreeing to a $1,251,040.91 contract with The Pike Group.
In September, at least two mechanics liens worth a combined $452,214.48 were filed against The Pike Group in connection to the Hyatt Place. Following those on October 22, two mechanics lien claims were processed against the GC, combining for a total value of $93,977.92 in unpaid work.
A lien claim valued at $289,632 wasmade by subcontractor A.D.W., Inc. against The Pike Group on October 27. The lien affidavit states, A.D.W. supplied and installed drywall, framing materials, and studs to the project.
To date, the most recent lien claim was filed on October 28 by subcontractor Barker Steel, LLC against fellow subcontractor SVT Masonry in the amount of $6,949.72. The claimant subcontractor’s lien was filed after one day of service to the property in December of 2019.
While Pioneer Companies is deemed the property owner of the entire Quackenbush Square project, the lien affidavits list 705 Broadway Hotel, LLC as the lone property owner of the Hyatt Place hotel.
Berkshire Bank sues developer of Albany Hyatt Place Hotel
On October 20, 2020, Berkshire Bank sued the Quackenbush Square development and its property owner, Pioneer Companies of Syracuse, in the state Supreme Court in Albany.
The lawsuit states that Berkshire Bank claims their $4 million loan extended to Pioneer Companies from 2017 is now in default as a result of excessive mechanics lien filings against the property.
A November 4 report from the Times Union states that the Quackenbush Square project was paced to be completed by the second quarter of 2021, but after construction was paused during the COVID-19 pandemic, it is now “unclear when or if construction will resume.”