Alrose’s Allegria property in LI files for Ch. 11

TRD NEW YORK /
Jul.July 29, 2011 07:42 PM

alternate
text
Allen Rosenberg and the Allegria Hotel

Midtown-based Alrose Group placed the real estate underlying the high-end Allegria Hotel & Spa in Long Beach, L.I., under Chapter 11 bankruptcy protection in the Eastern District in Brooklyn Thursday, court records show.

The Alrose Group’s special entity Alrose King David, which owns the 143-room, beachfront hotel property at 80 West Broadway in Long Beach, had between $10 million and $50 million in both debts and assets, the court filing indicates.

The hotel is not in bankruptcy and is operating normally, Allen Rosenberg, president of Alrose Group, said. The bankruptcy filing “is against the real estate entity that owns the hotel; it has nothing to do with the hotel operations,” Rosenberg said.

In fact, the hotel is slated to be packed with surfers during Quicksilver Pro New York  in the first two weeks of September. The surfing event is expected to attract 25,000 attendees.

Yet Rosenberg is under pressure from a number of lenders,  including Capital One which was offering last month to sell the $4.9 million note secured by Alrose Group’s commercial condominium at the Indigo Condominium at 125 West 21st Street, between Sixth and Seventh avenues.

Rosenberg said he was current on loan payments at Allegria and was not in default. However several sources speaking on background disputed that. Rosenberg declined to say why he filed for bankruptcy protection. Typically, borrowers file for bankruptcy when lenders are on the verge of holding a foreclosure auction or when it becomes impossible to pay bills such as the mortgage.

Bankruptcy records show 51 creditors, including Brooklyn Federal Savings and dozens of contractors, from Boro Plaster in Mineola to Trinity Interiors in Matawan, N.J listed in court records.

Sources said a $30 million note held by Brooklyn Federal savings and secured by the hotel property is in default.

The Alrose Group converted the hotel from a nursing home known as the King David. The hotel opened in 2009.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Jordan Roeschlaub and Dustin Stolly of Newmark Knight Frank (Roeschlaub and Stolly photo by Anuja Shakya, iStock)

Employees fleeing “toxic” team at Newmark Knight Frank

Red Oak Realty has coined a new contingency clause related to coronavirus after the seller got stuck in Wuhan, China. (Credit: iStock)

Coronavirus contingency clause added to Bay Area condo deal

Letitia James (Credit: Getty Images, iStock)

Attorney general sues Chestnut Holdings for lead paint

SoftBank Rajeev Misra (Credit: Getty Images)

Negative leaks and a ‘honey trap’: SoftBank exec reportedly schemed to topple rivals

Sam Zell of Equity Group Investments (Credit: Getty Images)

Sam Zell’s mobile-home firm stock up 1,200% since housing crash

arrow_forward_ios
Loading...