Jay-Z ’s plans to open a hotel in Manhattan have now ceased to exist thanks to a number of issues surrounding the purchase of the property.

NY.Curbed.com reports that Jay-Z partnered with hotelier and residential developer Andre Balazs and other developers to purchase the three-story building located in Manhattan’s Meat Packing District but the team somehow defaulted on a $24 million mortgage.

After defaulting on the hefty mortgage Jay-Z and team were informed that if the deed was returned to the lender then they would be able get out of their mortgage payments. Unfortunately, the deed was sent back via FedEx and the lender did not accept the package.

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Eventually DDG Partners, an investment and real estate development company, bought the loan in April.

In other Jay-Z news, later this year Jay-Z will be releasing Jay-Z The Hits Collection Vol. 1. A full Website for the album will be launched some time in the near future.

The compilation of past Jay-Z tracks will be released on June 29, 2010.