Brookland Capital, once one of the most prolific multifamily developers in Brooklyn, is selling another property as a means to remedy its financial troubles.
Local developer Serabjit Singh is buying 257 Washington Avenue in Clinton Hill from the troubled development firm for $13.5 million, according to sources familiar with the deal. A TerraCRG team led by Dan Marks brokered the transaction.
Brookland has been facing serious financial difficulties since at least last year. The firm announced in November that it would not meet its upcoming debt obligations, and bondholders appointed New Jersey landlord Ronel Ben-Dov to oversee Brookland Upreal, the firm that issues bonds in Israel, at the beginning of the year. The company, which owes bondholders about $42 million over the next three years, has been looking to sell its properties and refinance its debts.
Spruce Capital Partners picked up the developer’s remaining condos at 554 4th Avenue in Park Slope for nearly $30 million, and SME Capital Ventures purchased a Bed-Stuy rental property for 22 million.
The site Singh purchased from Brookland is home to the now-shuttered St. Luke’s Evangelical Lutheran Church of Clinton Hill, and Brookland had been planning to convert it into a residential development with 21 units. Singh will likely move forward with a residential project as well, according to Marks.
Singh declined to comment. He previously worked on a church conversion at 232 Adelphi Street in Fort Greene, which was formerly home to the Carlton Mews Church and is now a 12-unit residential building.