Brookland Capital’s financial woes have now come for its own office.
Boaz Gilad’s prolific development company is facing eviction from its headquarters at 308 Malcolm X Boulevard in Bedford-Stuyvesant, according to a notice posted on the building.
The document states that the firm must be out of 308 Malcolm X Boulevard by April 29 and is signed by New Jersey landlord Ronel Ben-Dov, who was appointed as the new administrator of Brookland Upreal earlier this year.
Brookland Upreal is the British Virgin Islands-incorporated entity that issues bonds in Israel on Brookland Capital’s behalf, and Gilad’s Israeli bondholders forced him to relinquish control of it at the beginning of the year over concerns about the company’s ability to repay its debts.
Since then, Brookland Capital hired Icon Realty Capital to restructure its portfolio, and it engaged
TerraCRG to market several of its properties for sale. Spruce Capital Partners recently acquired all the condo units at Brookland’s 554 4th Avenue in Park Slope for $29.6 million, and SME Capital Ventures was closing in on a $22 million deal for 691 Marcy Avenue earlier in the year. However, that deal has yet to hit property records.
Gilad did not respond to a request for comment. He told The Real Deal soon after being forced out of Brookland Upreal that he was considering selling some of his properties to help the firm get through its financial struggles but would prefer to hold onto them and that his Israeli bondholders didn’t care about his company or his employees.
“All they care about is squeezing as much money from the company as possible to pay the bonds,” he said.
Notice of a lawsuit against Brookland Capital was posted alongside the eviction notice at the firm’s building as well. The construction firm Braga Corp. is suing them for breach of contract, claiming the firm still owes it more than $300,000 for construction work it did at 650-658 Madison Street in Bed-Stuy.
Braga is being represented in the suit by the law firm Gutman Weiss. The law firm is also representing Magellan Concrete Structures and Guma Construction Corp. in a similar suit against Brookland at 88-92 Linden Boulevard in Flatbush.
Magellan said it did about $3.5 million worth of work at the site and is still owed more than $700,000 from Brookland, and Guma claims Brookland still owes it about $8,800 for its work on the site.
Attorneys for the plaintiffs declined to comment.
Danielle Balbi contributed reporting.