Bankrupt developer unloads waterfront condos for $24.5M

Jan.January 21, 2014 02:40 PM

Brooklyn developer Jacob Pinson has found a buyer for 49 unsold residential condominium units and 43 parking spaces at his Breakers project in Sheepshead Bay.

The units sold for $24.5 million to an undisclosed buyer, lender Madison Realty Capital told The Real Deal exclusively.

Madison took control of the waterfront condominium project at 3112-3144 Emmons Avenue from the previous lender in 2012, after Pinson defaulted on a $23.5 million note on the property from TD Bank. The sale of the condos was completed by Pinson, who filed for Chapter 11 bankruptcy, according to officials at Madison Realty Capital, which was a secured creditor in the bankruptcy proceedings.

Pinson is also the developer the Vermeil, a pricey sold-out 22-unit condo building at 133 Sterling Place in Park Slope.

The developer could not be reached for comment.

“We navigated the challenges of acquiring the defaulted loan and then improving and renovating this property to maximize its value, all within the bankruptcy framework,” said Josh Zegen, co-founder and managing member of Madison, in a statement to TRD.

Madison declined to reveal how much it had paid for the note in 2012 but a source said the company paid out around $19 million for both the note and the cost of renovations combined.

The 49 units total 64,561 net sellable square feet, the company said.

Units for sale at the Breakers have ranged in price from $389,000 to $1.37 million, according to previous reports. The 75-unit building was completed in 2009.

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