Co-living startup The Collective will lose its flagship development project as the company is reportedly behind on the $49 million mortgage. The Collective had plans to build a 500-apartment tower at 555 Broadway in Williamsburg.
The site’s lender has hired Cushman & Wakefield to market the loan for a sale to a buyer that could take control of the property, according to reports.
Despite the lender’s intention to sell the site, a spokesperson for The Collective said the co-living company is “considering a number of options to take the project forward”.
The Collective was founded in 2010 by Reza Merchant. Recent reports claim that the company is on the brink of bankruptcy. The Collective has reportedly hired FTI Consulting to guide it through administration, which is a similar process to the one of bankruptcy for entities in the UK.