Abyssinian’s fire sale sets off legal spat

New York /
Mar.March 13, 2017 08:33 AM

Cash-strapped Abyssinian Development sold off 31 properties in a fire sale that is now causing a bitter dispute between the portfolio’s buyers.

Andrew Stone, who partnered with Genesis Companies’ Karim Hutson to buy the Harlem portfolio, is accusing Hutson of creating a separate firm to “steal” profits from the apartment buildings and brownstones, the New York Post reported.

Stone’s lawsuit claims that he and his firm, Jazz Realty, put up millions and guaranteed loans to close on the portfolio, but Hutson set up secret entities to pilfer the revenues from him.

A Manhattan Supreme Court judge issued a preliminary injunction freezing the assets until the dispute is settled in arbitration. But at the same time a Genesis Companies executive, managing partner Brian Benjamin, is expected to be nominated by the Manhattan Democratic Party to run in a special election to fill Harlem’s state senate seat.

Benjamin declined to comment to the Post, but a Genesis spokesperson denied Stone’s claims, saying that “Genesis’ performance has earned the reputation as a trusted partner to organizations committed to affordable housing, especially those representing communities of color.”

“This is an isolated incident that involves one individual investor,” the spokesperson added. “All of the allegations have been denied and the case is going to arbitration where Genesis anticipates total vindication.”

Pastor Calvin Butts, who heads Abyssinian, was reported last year to be mulling a run for mayor. [NYP] – Rich Bockmann

 

Related Articles

arrow_forward_ios
Sugar Hill Capital’s David Schwartz with 121 West 116th Street (TerraCRG, Google Maps, Getty)
Uptown landlord Sugar Hill Capital faces another foreclosure
Uptown landlord Sugar Hill Capital faces another foreclosure
From left: Bruce Teitelbaum and Kristin Richardson Jordan along with the site of a rejected housing development on 145th Street and Lenox Avenue in Harlem (Getty, Google Maps)
Pol who sank Harlem housing project rallies against truck lot on property
Pol who sank Harlem housing project rallies against truck lot on property
Bruce Teitelbaum and Kristin Richardson Jordan with a rendering of the truck depot sign scheduled for installation Thursday at the site of a rejected housing development in Harlem. (Getty)
Bruce wasn’t bluffing: Truck depot opening at scuttled housing site
Bruce wasn’t bluffing: Truck depot opening at scuttled housing site
Former NY Lt. Gov. Brian Benjamin (Illustration by Kevin Cifuentes for The Real Deal with Getty Images)
Former Lt. Gov. Brian Benjamin skates on developer-linked fraud charges
Former Lt. Gov. Brian Benjamin skates on developer-linked fraud charges
BRC's Julie Salamon with 1721 Amsterdam Avenue (Bowery Residents’ Committee, Google Maps)
Nonprofit plans 200-unit Harlem supportive housing project
Nonprofit plans 200-unit Harlem supportive housing project
From left: Assemblyperson Inez Dickens and Councilperson Kristin Richardson Jordan
Pol who killed Harlem project could face primary challenge
Pol who killed Harlem project could face primary challenge
Healing From Heaven Temple COGIC and Childs Memorial Temple COGIC (Google Maps)
Meet the developer from the Harlem church scandal
Meet the developer from the Harlem church scandal
City Council member Kristin Jordan and developer Bruce Teitelbaum with West 145th Street and Lenox Avenue (Illustration by The Real Deal with Getty)
Developer to Harlem pol who blocked project: “Truck you!”
Developer to Harlem pol who blocked project: “Truck you!”
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...