Menachem Stark’s Williamsburg rental to be bought for $52M

Meadow Partners acquiring late-landlord's building out of bankruptcy court

TRD New York /
May.May 07, 2014 12:30 PM

The Midtown-based investment firm Meadow Partners is set to purchase for $52 million a Williamsburg rental building developed by the late Menachem Stark and his partner Israel Perlmutter that would bring to a close a five-year bankruptcy process, federal court records show.

Meadow, led by managing partner Jeffrey Kaplan, will buy the seven-story building at 100 South 4th Street in Williamsburg. The rehabilitated loft building holds 73 apartments and four commercial units.

The prospective sale was firmed up yesterday with an order by Brooklyn U.S. Bankruptcy Judge Elizabeth Stong, affirming the agreement to sell the property to Meadow Partners. The final deed transfer is expected in several months, court documents indicate.

The deal is expected to repay all lenders’ claims against the property and provide money to equity owners including Perlmutter and Stark’s estate.

Under the plan, Meadow’s $52 million purchase price will pay Deutsche Bank’s secured claim of $40.8 million plus additional fees; $2.9 million plus additional amounts to a group identified only as Investors Team LLC, which holds a defaulted loan with a face value of $1.5 million; estate administration fees and taxes. Any money left over would be divided among Perlmutter and Stark’s estate.

Kaplan declined to comment.

Stark and Perlmutter purchased the industrial building in 2006 for $9 million as one of dozens of properties they acquired during the last decade. But this project ran into financial trouble during the downturn and the first mortgage lender filed to foreclose on $29 million. The pair filed for bankruptcy in U.S. Bankruptcy Court in Brooklyn in 2009 to protect their interest in the property.

The building has been under the control of a bankruptcy court trustee since January, after accusations by lenders of improperly removing money from a checking account associated with the project. The court trustee has identified $2.2 million improperly removed.

Stark, a father of seven, was found dead in a dumpster on Long Island on Jan. 3. Investigators arrested construction worker Kendel Felix in April and charged him with the kidnapping and murder of the landlord.


Related Articles

arrow_forward_ios
From left: 295 Fifth Avenue, 3 World Trade Center, 50 Rockefeller Plaza (Credit: Google Maps, Wikipedia)

These were NYC’s top office leases in October

1 Flatbush Avenue and the site at 570 Fulton Street (Credit: Google Maps)

Pair of DoBro properties up for sale by Slate, Meadow Partners

Barney's at 660 Madison Avenue with Ashkenazy Acquisition Corporation's Daniel Levy (Credit: Getty Images, LinkedIn)

Barneys’ flagship Madison Avenue spot will stay open — but with a smaller footprint

275 Park Avenue in Brooklyn (Credit: StreetEasy)

“Chocolate” building near new Wegmans satisfies sweet tooth for free-market deals

(Credit: iStock)

It’s over for Barneys: Luxury retailer to be sold, stores closed

295 Fifth Avenue with Tribeca Associates principals Elliot Ingerman and Bill Brodsky (Credit: Google Maps, LinkedIn)

Textile Building to get $300M overhaul

Forever 21 owes these five mall owners $20.9 million, bankruptcy court records show.

For mall owners like Simon, Brookfield and Vornado, Forever 21 bankruptcy signals more trouble ahead

Blackstone President and COO Jonathan Gray and Stearns Lending CEO David Schneider (Credit: Getty Images)

Blackstone-backed mortgage lender Stearns files for bankruptcy

arrow_forward_ios