Year-round management faces foreclosure on Bushwick rentals
Brooklyn developer Yoel Goldman can’t seem to take a break.
Today, a lender is seeking to seize some of the assets of All Year: The Denizen, a luxury rental complex in Bushwick. A subsidiary of Mack Real Estate plans to sell the interest on the collateral for a $ 65 million mezzanine loan. The warranty consists of the second phase of the 900-unit apartment complex, according to marketing materials reviewed by The real deal.
The Mack real estate group plans to sell the interest through a UCC foreclosure sale, which is due to take place on February 5. The lender hired JLL to lead the marketing.
If the sale goes through, Mack Real Estate or a new investor would take control of the second phase of the residential project. The new owner would still be responsible for the senior loan payments.
Neither All Year Management nor Mack Real Estate immediately returned requests for comment.
In recent years, All Year has become one of the most prominent owners of the gentrification of Brooklyn neighborhoods by taking advantage of cheap financing in the Israeli bond market. Its portfolio includes 1,198 multi-family units and 184,179 square feet of retail space, with properties in Bushwick, Williamsburg and Bedford-Stuyvesant.
Denizen is the company’s most important asset. All Year bought the two sites that make up the resort – 54 Noll Street and 123 Melrose Street – in 2015 and 2016 for $ 68.5 million and $ 72.2 million, respectively. The first phase, at Noll Street, opened earlier this year.
In June 2019, the firm marked $ 235 million in financing from JPMorgan and Mack Real Estate Group for the second phase of the project.
The company was previously in talks to secure $ 652 million from Citi Real Estate Group and Goldman Sachs which would be used extensively to refinance the Bushwick apartment complex. This agreement has not yet been concluded.
Goldman’s business struggled during the pandemic. All Year announced in November that it would “temporarily suspend” payments to bondholders for 30 days and delay the release of its third quarter financial statements.
The company also recently revealed that it has missed payments on two loans since this summer. This included a $ 35 million preferred stock investment for a Gowanus development site on Smith street, and the $ 65 million mezzanine loan for Denizen.