Investors in a stalled apartment building in downtown Riverhead are determined to get the project across the finish line without its troubled original developer, one of the investors’ attorneys said in an interview Monday.

G2D Construction is no longer involved in the development of the five-story, mixed-use apartment building at 205 Osborn Boulevard, said Bay Shore attorney Paul O’Brien, who represents investors John Paci III and Jerome Wood. Together, Paci and Wood own a majority stake in two companies that own the 205 Osborn property and The Shipyard, a four-story, mixed-use apartment building previously developed by G2D at 331 East Main Street.

O’Brien said G2D put the 205 Osborn project “in an unenviable position economically and created many of the problems we are now dealing with.”

Construction on the project appears to have stalled since at least May, and there are 12 lien filings against the property totaling more than $2.1 million. A lien was also filed against The Shipyard’s property for $149,009. More liens have been filed against the property since then RiverheadLOCAL first reported It was in foreclosure at the beginning of last month.

Additionally, G2D CEO Gregory DeRosa of Oyster Bay has been hit with more than a dozen civil lawsuits by investors and lenders who say he is in default on payments. Both Paci and Wood sued DeRosa.

An agreement between 205 Osborn Avenue and the Riverhead Industrial Development Agency provides tax benefits for both projects. Requires liens to be released or secured within 30 days from the date of application. IDA Executive Director Tracy Stark-James said in a press release late last month that the agency expects both projects to “fully contribute to the development of the town” despite liens and lawsuits against DeRosa. He said the IDA has been in contact with the project’s investors through O’Brien.

MORE COVERAGE: Riverhead Industrial Development Agency optimistic troubled developer’s projects will ‘perform as intended’

O’Brien said his clients have tried to resolve liens against the property by either paying contractors or guarantorizing the liens. O’Brien said DeRosa “failed to pay the contractors who completed the work on the buildings despite taking withdrawals from the company.”

According to O’Brien, DeRosa misrepresented the construction status of 205 Osborn Street to investors. “We feel that 331 East Main Street was deprived of what should have been working capital by DeRosa,” O’Brien said.

O’Brien said Paci and Wood took full control of the properties in September; O’Brien said DeRosa’s minority interest in the companies fell to zero because he did not make the capital contribution he committed to the company under his ownership agreement.

“At the end of the day, John (Paci) and Jerry (Wood) will provide the capital needed to A: continue to stabilize 331 East Main Street and B: complete construction on 205 Osborn,” O’Brien said. .

The investors hired a new general contractor, MacX Corp., for the project and obtained the necessary permits and approvals to proceed with construction at 205 Osborn Boulevard, O’Brien said. That includes approval from the Riverhead IDA, O’Brien said.

“There are some things that I think we can do during this time to make sure the property is safe and secure and that there are no further disruptions,” O’Brien said. “But in terms of bringing trades in to complete the job, those types of things are as soon as we get approval.”

The company’s website is offline. Top executives no longer work at G2D, according to their LinkedIn profiles. The company has closed its Huntington offices, according to Locust Valley-based newspaper The North Shore Leader. One of DeRosa’s attorneys said in a filing with the court last week that DeRosa will file a Chapter 7 bankruptcy petition early this week.

“I think it’s safe to say that G2D is bankrupt,” O’Brien said.

DeRosa did not respond to an email seeking comment for this story.

Dubbed “Station One” by G2D, the project at 205 Osborn is being developed as a 37-unit market-rate apartment building with ground-floor commercial space. Once the dilapidated site of a long-shuttered former medical office, the project was the first in the Railroad Avenue Overlay District to receive approval from the town, allowing for increased density and a greater variety of uses, including a five-story mixed-use apartment building. buildings — in the area surrounding the train station. The Shipyard, located on East Main Street, currently operates as a 36-unit, market-rate apartment building with ground floor commercial space.