20 Bayard condo files for Chapter 11
December 04, 2009 07:30PM By David Jones
20 Bayard
According to documents filed in U.S. Bankruptcy Court in Brooklyn, the condo by North Development Group owed more than $10 million to more than 50 creditors.
The reason for the filing was unclear, however bankruptcy is often used by developers to prevent a property from being foreclosed on. Records with the city Department of Finance show that Istar Financial inherited the building loan from subprime lender Fremont Bank. However, court documents show that Manhattan-based hard money lender W Financial among the listed creditors.
The creditor with the largest unsecured claim was Add Plumbing, a contractor at 120 Evergreen Avenue in Brooklyn. The claim was for $325,000.
North Development Group had previously parted ways with the Developers Group and Prudential Douglas Elliman at the Karl Fisher-designed property, after the brokers argued for lower sales prices at the building. Streeteasy data shows units have been selling for $825 per square foot.
After selling about 50 percent of the 64-unit building, the developer began offering apartments for rent, officials said.
"We sold close to half the building, then we had differences with the developer and we parted ways," said Lior Barak, a senior vice president at Elliman, who represented the building in 2007.
Unit owners at the building were shocked at the move, because there were no visible signs that the building was in the amount of distress that would force a bankruptcy filing.
"If anything, that's what is such a surprise," said Robin Ottoway, a unit owner who bought his apartment in August 2008. "Any problems that we had they came up and they fixed."
Ottoway said the building is nearly full of either unit owners who closed on their apartment contracts or renters, who have moved in since earlier this year.
However, attorney Rob Braverman represented a buyer who filed with the New York State Attorney General in 2008 to get out of a contract at the building. Braverman said the case stemmed from an alleged mold problem at the property. He said the case was settled about two months ago.
Porzio, Bromberg & Newman attorney John Mairo, one of the lawyers representing the North Development Group-controlled sponsor, 20 Bayard Views, in U.S. Bankruptcy Court, was not immediately available. The other attorney, Leslie Berkoff, of Morrit, Hock, Hamroff & Horowitz, was traveling and not scheduled to return until next week.
North Development, led by Isaac Hager, is facing litigation over a $17 million loan made to Kent Wythe 9th Street, another entity of Hager's created to develop a site at 421-431 Kent Avenue and 464-474 Wythe Avenue in Williamsburg.
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Comments
Anonymous
Time for an auction. then again there is mold, so a moldy auction. No problem call REDC. they did well in Riverdale.
Comment #1 Posted By: Anonymous 12/05/09
Anonymous
Oh, and they have to pay FEMA flood insurance as do all the others in that area - see the maps. No kidding. The entire area is in an old swamp.
Comment #2 Posted By: Anonymous 12/05/09
Anonymous
Hager is a bad guy..Deserves it.
Comment #3 Posted By: Anonymous 12/05/09
Anonymous
i own a condo there hager lax be strong
Comment #4 Posted By: Anonymous 12/05/09
Anonymous
Hager is a great guy, he made a great job, the building is beautiful.... he is a smart boy and he knows what he is doing
Comment #5 Posted By: Anonymous 12/05/09
Anonymous
I agree with comment # 5, Hager and Lax son Moshie are both great and smarts guys leave it up to them
Comment #6 Posted By: Anonymous 12/05/09
Anonymous
No surprise about Hager. Anyone in the business saw this coming from a mile away.....! the guy is deep in debt...being sued at all of his other projects...! See the article about Hager being sued for millions by Kalikow in the real deal a few days ago....! A CROOK IS A CROOK IS A CROOK!
Comment #7 Posted By: Anonymous 12/06/09
Anonymous
Hager and Lax are nice ppl, They will make it out stronger than ever..............They never came into this business to steal a dollar!
Comment #8 Posted By: Anonymous 12/06/09
Anonymous
Of course with a hard money lender like W Financial they had to file for bankruptcy protection, they are most probably paying 15 to 18 percent interest on the loan, and hard money lenders SHARKS will not negotiate they will take you to the cleaners without Blinking an eye. Good luck with the restructuring 20 Bayard Don't let the SHYLOCKS take your Money!
Comment #9 Posted By: Anonymous 12/06/09
Anonymous
Hager is juch a nice guy, will come out stronger then ever, i bought a unit there, and the best deal i ever made!!
Comment #10 Posted By: Anonymous 12/06/09
Anonymous
REDC bombed in Riverdale.......it was all BS........ dont be fooled
Comment #11 Posted By: Anonymous 12/06/09
Anonymous
the other shoe is falling.........
Comment #12 Posted By: Anonymous 12/06/09
Anonymous
the only people making money off this issue are the attorney's. they sound like fancy park avenue guys that bill out at $300 per hour. this country is great.
Comment #13 Posted By: Anonymous 12/06/09
Anonymous
#15 for such a commentary why are you blogging? Realty show hunger? Shouldn't (or wouldn't) you rather be paid to do something? Thanks for the drama.
Comment #14 Posted By: Anonymous 12/07/09
Anonymous
The W mortgage must have become due and they had to protect against foreclosure and a court receiver. Building is worth a ton.
Comment #15 Posted By: Anonymous 12/07/09
Anonymous
#15 - sounds like it's the end of the world! SELL SELL SELL! It's just too funny.
Comment #16 Posted By: Anonymous 12/07/09
Anonymous
this building is so ugly and un eco
Comment #17 Posted By: Anonymous 12/07/09
Anonymous
why was 15 deleted? They speak the truth!! Greed is over - Sell before its too late !! You have been warned!
Comment #18 Posted By: Anonymous 12/07/09
Anonymous
"After selling about 50 percent of the 64-unit building, the developer began offering apartments for rent, officials said. " I feel bad for the unit owners....now they will never be able to sell their units when the building is 50% rentals. But what is so surprising about this building going into bankruptcy. Ive been calling this one ever since I saw them breaking ground on the project.
Comment #19 Posted By: Anonymous 12/07/09
Anonymous
I see the future, and it is Section 8.
Comment #20 Posted By: Anonymous 12/07/09
Anonymous
omg..would this affect other development in williamsurg?
Comment #21 Posted By: Anonymous 12/08/09
Anonymous
Why do I always feel that I am reading the comments of the people involved in the article when I read comments on realdeal. "Hager is an awful guy." "No, Hager is a genius and a great guy." "Kent Swig is a moron." "No Kent Swig is a genius and will be proven to be so when his investments bounce back." Who are you people?
Comment #22 Posted By: Anonymous 12/10/09
gonifwatch
20 bayard in bankruptcy -- so there IS a god. this shoddy, moldy building constructed by a gonif outfit in bed with shyster mold remediation boyos with their own fake lab to verify faked remediation results deserve a meltdown and a nice long stay in nice long stay in the greybar hotel
Comment #23 Posted By: gonifwatch 12/10/09
Anonymous
interesting that on the one hand Moshe Lax can be involved in a high-profile joint venture with Ivanka Trump for a new diamond business venture, and unable to pay his bills on the other. I'm sure the Trumps will be happy to see they have such a weak partner.
Comment #24 Posted By: Anonymous 12/19/09
Anonymous
Guys! Whoever doesn't understand legal bankruptcy procedure please don't comment silly comments. This is about the loan and its interest. It has nothing to do with the individuals...chapter 11 is created to protect an entity on its own merits
Comment #25 Posted By: Anonymous 12/20/09
Anonymous
moshe lax is the nicest and smartest guy you"ll ever meet he"ll come of this stronger than ever
Comment #26 Posted By: Anonymous 12/22/09
Anonymous
Does anyone notice all the postings about how great Moshe is? From his wife maybe?
Comment #27 Posted By: Anonymous 12/26/09
Anonymous
What am I missing here? There are 3 deeds recorded on this site. 1 is for a sale of a 50% interest for 10.8M. Which means that 31,000 BSF (31,000 LSF X 2 FAR)*50% sold for 348 per BSF. One partner took 1.7M for his 17.5% interest and put his other 32.5% into the deal.
Comment #28 Posted By: Anonymous 05/18/10
Anonymous
the popacks are worser than the niggas they rip off through out the city in the buildings they own, this is just another sham from the popacks and hagers, they give all real jews in the world a stain, the only jews who chamion them are just like them
Comment #29 Posted By: Anonymous 06/12/10