Isaac Hager enjoys the November roller coaster.
Last week, the Brooklyn developer partnered with nursing home investor Darryl Hagler to get the site In districts with plans for large-scale housing projects. He is set to lose one this week.
Madison Realty Capital, the senior lender of the development at 159 Broadway in Williamsburg, where Hager once planned a 26-story hotel and condominium, is set to close in May 2018. that purchase of assets this week, according to documents filed in bankruptcy court. Madison used existing debt to acquire the site. PincusCo was the first to report the sale.
Hager’s Cornell Realty purchased the site, located next to the historic Williamsburgh Savings Bank building and across from the Peter Luger Steakhouse, in 2017 for $26.3 million. Bluestone Group of Tabak provided a $3.5 million mezzanine loan. A plan submitted in 2018 included 235 key hotels, condominiums, bars and restaurants.
Hager began excavation and foundation work, but months after the pandemic, Bluestone began a UCC foreclosure on the site’s stake, with the auction finally set for December 2020.
Madison Realty then filed for foreclosure of the property’s senior debt in July 2020, alleging that Hager defaulted.
Ahead of the UCC auction, Hager put the owning entity into bankruptcy protection stop foreclosure. Bankruptcy proceedings dragged on for almost two years before that. White Plains Judge Robert Drain Before Madison’s bankruptcy plan is approved this summer.
Greg Corbin, president of bankruptcy and restructuring at Rosewood Realty Group, pitched the sale. In his filing, Corbyn said later in the sale process, the property lost tax benefits known as the Industrial and Commercial Reduction Program worth about $3 million a year. The loss of tax incentives has reduced the value of assets and interest, according to Corbyn’s filings.
Hager has been familiar with bankruptcy court for several years. The Tillary HotelA property he co-owns has taken bankruptcy protection in 2020 to avoid foreclosure. This summer, Hager invested a minority stake in his Churchill Real Estate office and retail project at 257-263 West 34th Street in Midtown. to bankruptcy protection.
But Hager’s problems haven’t hindered his ability to raise money for new deals. Last week, he partnered with Hagler to tell Bruce Eichner that he once planned a 1,500-unit residential project for Crown Heights, near the Brooklyn Botanical Gardens. Bought all cash.
Madison Realty declined to comment. Hager did not return requests for comment.