Albany apartment construction could resume as lawsuits filed

Albany apartment construction could resume as lawsuits filed

According to a city official in Albany, construction of a $35-million apartment complex, which was stopped in March, could soon resume.

Richard LaJoy met with the owners at 1211 Western Ave. last week and they told him that new contractors will be hired to continue construction.

LaJoy, in an email sent to Albany Business Review, wrote: "They had it down to just two contractors who were reputable but they were still dealing with their legal team." They said they hoped to be up and running in three weeks, as they had a deadline for tenants moving in this fall. It's ambitious, but if they start soon it is possible.

LaJoy continued, "We've inspected the property along with the owner and their engineers in order to make sure the site is safe."

DMG Investments of Manhattan officials did not return messages seeking comments.

Subcontractors have filed more liens on the property at the 1211 Western Ave., claiming they are owed money by the University of Albany for materials and/or labor for the planned 136 unit building.

Two of these subcontractors filed separate lawsuits at the Albany County Supreme Court seeking more than $1.8 Million.

DMG Investments terminated their contract with Trinity Building and Construction Management Corp. on March 15, "for convenience," as stated in a letter to vendors and subcontractors.

The Albany Business Review has obtained a copy. The work stoppage has not been explained publicly.

Trinity filed a mechanic’s lien for $3.65m on March 17, but discharged it a month later. A new lien of $5.71m was then filed, according to documents in the Albany County Clerk’s Office.

According to the filings at the clerk's offices, other subcontractors also filed liens, including Arnan Development Corp. DBA Duke Concrete Products of Oneonta (95,528); White Cap L.P. of Orlando Florida ($152,924), Homiak Brothers of Berlin New York ($222.454), and Nucor Harris Rebar Northeast of Milford Massachusetts ($18.176).

Commercial Distribution Specialists DBA B&L Wholesale Supply has filed a lien for $1.3 million and a separate lawsuit against DMG Investments LLC and 1211 Western Ave Property Associates, seeking $1.76million.

The company provides custom-built exterior and interior walls, roof trusses as well as floor trusses.