Cannon Hill Faces Foreclosure on Penn Station Lab Site, $65.9M Owed

Quinlan Development Group has filed to foreclose on Cannon Hill Capital Partners’ stalled life-sciences and lab-office redevelopment near Penn Station, with the debt on the site having ballooned from a $54 million original loan to $65.9 million in principal, interest and charges.

Why it matters

The site at 320 West 31st Street, across from Moynihan Train Hall, was supposed to become an 11-story, roughly 156,000-square-foot lab and office building. Cannon Hill, led by co-founders Jeff Gronning and Melissa Cosgrove Donohoe, never broke ground. The old building on the ground lease, once part of Touro College’s campus, is still standing and carries an open Environmental Control Board violation. Quinlan’s attorneys called conditions at the property “waste and decay” tied to “ongoing mismanagement” in the filing, which also names Cannon Hill as a recourse guarantor and defendant. Quinlan bought the defaulted loan from Bank of China in September and moved to foreclose within weeks.

The numbers

An SL Green-tied lender originated the $54 million loan in February 2020 to finance Columbia Property Trust’s purchase of the ground lease for $88 million. Bank of China took an assignment of the loan in June 2021 and later extended its maturity to August 18, 2025. Bank of China issued a default notice in September 2025, then sold the defaulted debt to Quinlan on September 17, 2026. Quinlan filed to foreclose in New York County Supreme Court on October 13, 2026, 421 days after the loan’s extended maturity date. The debt has grown to $65.9 million with accrued interest, default interest and other charges. Quinlan is asking the court for a foreclosure sale and a receiver to collect rent and manage the property in the meantime. We confirmed the site’s BBL (1007540051) through city PLUTO records, which list the ground-lease landlord as Overtime Properties LLC, matching the entity named in the filing, on a 25,912-square-foot lot carrying a four-story, 116,000-square-foot building built in 1953.

What’s next

A receiver fight and a foreclosure sale now sit ahead of any redevelopment near Moynihan Train Hall, one of the most heavily trafficked blocks in Manhattan. Quinlan, Cannon Hill and Columbia Property Trust did not respond to requests for comment in the original report. We will track the New York County Supreme Court docket for a receiver order and any sale date. For more on lenders moving against stalled New York sites, see our report on 679 East 232nd Street in the Bronx, and our broader New York market coverage.