Home News Isaac Hager Seeks Bankruptcy for Stake in Churchill’s Penn Plaza

Isaac Hager Seeks Bankruptcy for Stake in Churchill’s Penn Plaza

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Isaac Hager at 257-263 West 34th Street and Cornell Realty (Google Maps, Getty)

Cornell Realty Management Isaac Hager is back in bankruptcy court — this time over a minority stake in a Midtown building he’s been trying to avoid foreclosure.

The entity in which Hager owns a 15% interest in Churchill Real Estate’s Penn Plaza Building at 257-263 West 34th Street Filed for Chapter 11 bankruptcy in Brooklyn on Wednesday. Pincasco First reported submission.

David Goldwasser of FIA Capital Partners is a bankruptcy expert and a New York City developer. Westchester County Bankruptcy Court, listed as Chief Restructuring Officer.Goldwasser said Hager was in downtown Brooklyn Tillary Hotel went bankrupt two years ago.

According to the bankruptcy filing, Hager has put about $7.5 million into Churchill’s project, and while the building is empty due to Covid, it has “a potential value equal to or greater than about $52 million in mortgage debt. There is.”

No other investors in the property have filed for bankruptcy, Churchill’s attorney Robert Tolchin said. real.

Churchill had Difficulty in securing tenants The building is partly due to the pandemic and crime in the surrounding area. Both 7-Eleven and Merck have withdrawn potential leases after robberies and stabbings nearby, and an employee at Kolb Radiology, one of his two companies that rented the space, said delivery Inside was attacked outside the property. (Bloomberg reported last week that Awareness of crime in the city We are ahead of reality. )

Churchill says he has spent about $90 million on office and retail buildings since 2016. But the pandemic hit New York office and retail leases as the project neared completion after Churchill received his temporary certificate of occupancy in 2019.

Churchill turned to Avison Young in 2020 to help find potential residents for the building. The company took his 40% of the allotted square footage, which was not enough for Churchill to make his monthly payments.

After Churchill missed his monthly payments in April 2021, the building’s senior lender declared default on the loan and began charging default interest two months later. Marathon Asset Management provided Churchill with his $52 million in three loans in 2019 to refinance the project’s debt and complete construction.

Marathon filed for foreclosure in state court last September. Churchill argued that Marathon could not sue foreclosure because the Cayman Islands paper company that held the debt was not registered to do business in New York at the time.

“We’ve all been through hell, but we can come back.”

Robert Tolchin, Churchill’s attorney

In response, Marathon said the entity was only financing the project and did not meet state registration requirements. Still, it transferred the loan to a Delaware-based company in November.

In January, a state judge appointed a trustee to take over the estate and forced Churchill to turn over his books, keys and bank accounts. Transferred to court.

Marathon previously claimed Churchill owed about $56 million, which includes $4.6 million in interest.

Torchin described the marathon as “vulture” and said the loan should have been restructured given the pandemic.

Churchill’s lawyer said, “We’ve all been through hell, but we can all come back. We didn’t mismanage the building.”

Hager and his attorney did not comment prior to publication.

Hager, a dealmaker who survived lawsuits and foreclosures after the Great Recession, One of the most active developers Brooklyn and Queens are no strangers to bankruptcy and foreclosure.

hager is Fight to keep the Tillary Hotel It has been out of the lender’s hands for most of the two years. He recently asked a judge to block his senior lender, Ohana Real Estate, from proceeding with a bankruptcy sale this month.

Hager partnered with friend Ripa Rubin in 2019 to purchase Tillary, a 174-room hotel and 64-unit apartment located at 85 Flatbush Avenue extension. When the pandemic hit, the hotel turned into a haven for homeless men.

Hager built a hotel and a 26-story hotel and residential tower at 159 Broadway in Williamsburg. Bankruptcy in 2020 To prevent foreclosure by Bluestone Group of mezzanine lessor Eli Tabak. Tabak, who held a $6 million mezzanine loan on a downtown Brooklyn estate, Filed UCC Foreclosure August 2020.

Hager is the grandson of the late Rabbi Mordechai Hager, a longtime leader of the Viznitz Hasidic sect. Isaac, also known as “Itzy,” launched real estate firm North Development Group in the mid-2000s, and the founder of diamond trading and real estate firm Dynamic Diamonds, he began partnering with Chaim Lax.

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