Clockwise from top left: Bronx landlord Sam Suzuki; 621 Manida Street in the Bronx; Omni New York partners Mo Vaughn (right) and Eugene Schneur; and 1271 Morris Avenue in the Bronx
From the August issue: For the owners of distressed properties, it’s a harrowing ride to stabilization. Note sale, foreclosure, bankruptcy or recapitalization, there is no easy path from financial trouble to stable footing. And while some savvy investors have seized control of valuable New York City properties, many owners and lenders have lost billions of dollars through distressed real estate sales and restructurings since the financial crisis began. This month The Real Deal examines five deals and how they unfolded.
In the fourth distress deal from the series, Ocelot Capital Group and partner Eldan-Tech tried to unload a portfolio of Bronx rental properties, but were unable even as the housing conditions in the apartments continued to decline. Controversial manager Sam Suzuki took over, but could not close on a purchase. Ultimately baseball slugger Maurice “Mo” Vaughn’s Omni New York acquired first the mortgages and then the deeds, and now is rehabilitating the buildings (note: correction appended). Click here to read the story.
