Side note to developer Mastro’s bankruptcy: Investors’ losses

(WSB photo from August 2009)
One month ago, we noted that the owner of that idled 35th/Avalon (map) development, Michael Mastro, had been forced into Chapter 7 bankruptcy. Today, the Seattle Times (WSB partner) reports on other casualties in the situation: His “Friends and Family” investors. Here’s the story. Proceedings in Mastro’s case continue later this fall; his West Seattle holdings also include the LLC that owns a parcel near the south end of Harbor Ave (proposed for a development called Aqua Bella) and the parent company of the West Water apartment-condo-apartment complex in Morgan Junction.

kstineback September 27, 2009 (1:38 pm)

While some may think that this bankruptcy will lead to the quick sale of assets, like the project above, I am skeptical and remain worried about this unfinished project becoming a serious hazard in our community. I think it is extremely unlikely that another builder will want to take on the risk of this unfinished project (which likely has a million smaller construction liens on it) and banks are so so bad at knowing what to do with foreclosed property. What is the City’s policy on something like this? Isn’t this a fire hazard, since I am sure it hasn’t been sprinklered yet…I also noticed that the site is unsecured, with fences barely enclosing it and easy to jump. I am sure we will see squatters there soon, which again brings me back to life safety issues.

Sorry for the rant, but I am just concerned!

JayDee September 27, 2009 (1:40 pm)

I toured West Water with a friend back when it first opened in late 2007 or early 2008. The cheapest former apartment was priced at $320K or so. Recently I saw a sign advertising “luxury” units from $179K. How the mighty have fallen.

Mike September 27, 2009 (2:27 pm)

Seattle Times article lists that Mastro has more than $500,000,000 debt, and that his friend/family investors will be out $100,000,000.

How is what he’s done the past 40 years legal? Even MegaMillions does not pay out that well.

Al September 27, 2009 (2:36 pm)

They should be required to at least finish the sidewalk area here so the pedestrian right of way is returned so peds can safely travel this area. This is a complete hazard.

Kara September 27, 2009 (3:50 pm)

This is such a bummer…with “Hole” foods and now this…West Seattle is a pedestrian haven now blighted with fences and damaged sidewalks. I left Ballard when it had gaping holes filled with muck…I was so excited for Hancock to come back and I thought having something on that corner of 35th and Avalon would look pleasing…guh. Good thing I’m still in love with this neighborhood and I’m not leaving again.

MrJT September 27, 2009 (5:40 pm)

Mike Mastro has been working up to this for years… Any subcontractor that was working for him has not been in the area very long.

Bogie September 28, 2009 (8:27 am)

I really wish something would be finished on that corner. I’ve watched it sit as an empty lot for 15+ yrs! The last thing it needs is an empty building sitting there for another 15 years.

swimcat September 28, 2009 (8:38 am)

The unfinished building on 35th and Avalon is a total safety hazard. Ever since construction started, northbound traffic through that intersection has been awful. It is also completely dangerous for pedestrians, and the unfinished building is not very secure so I agree that squatters will likely invade it at some point.

I contacted SDOT about this almost a week ago for the traffic issue- no response yet. If any of you are upset abuot the traffic and pedestrian safety through this corridor, I urge you to contact SDOT as well.

I would like to send an email to the City about the building security but don’t know who to contact. Any suggestions? Thanks!