All Year’s $346M multifamily portfolio sale to David Werner falls apart

Closing hampered by financing delays, rent reductions

TRD New York /
May.May 06, 2020 12:05 PM
Clockwise from top left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Credit: Google Maps)

Clockwise from top left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Credit: Google Maps)

All Year Management’s massive $346 million multifamily portfolio sale appears to have fallen victim to the economic fallout of coronavirus, as financing tightens and tenants struggle to pay rent.

An agreement to sell the portfolio, which covers 73 multifamily buildings in Brooklyn and one in Queens, was announced by Yoel Goldman’s firm two months ago on the Tel Aviv Stock Exchange. The deal was expected to generate about $59 million in positive cash flow for All Year after mortgages were paid off, and the buyer provided a $15 million down payment.

Although the prospective buyer was not named in the Tel Aviv disclosures, New York City property records show that prolific but low-profile Brooklyn real estate investor David Werner was on the other side of the deal.

The sale was set to close within 60 days of the agreement — or by Tuesday, May 5 — but Werner was apparently unable to line up acquisition financing in time, according to a new disclosure published Wednesday. The buyer asked for an extension, but without an additional $5 million extension fee as required by the agreement. All Year denied the request.

On Tuesday, Werner informed Goldman’s firm that the deal was off, and accused All Year of violating the terms of the agreement — which would require the seller to return the $15 million down payment. Alleged violations include failure to provide information about properties in the portfolio, reducing rents for tenants and entering into contractual agreements with tenants without Werner’s approval.

Werner is known as one of the most active syndicators of big real estate deals in New York, making quick and lucrative exits shortly after closing deals.

The scrapped sale included 611 residential units and 18 commercial units. Elsewhere in its portfolio, All Year announced in February that it was close to securing a $675 million refinancing for the Denizen Bushwick, a massive mixed-use project on the former Rheingold Brewery site. That deal has not closed, according to property records.

The developer has also announced that it is seeking to sell or refinance the William Vale hotel and office complex to pay down Israeli bonds. The hotel is currently closed due to the coronavirus.

All Year did not respond to a request for comment. Werner could not be reached for comment.

List of Properties in All Year’s Scrapped Portfolio Sale

BOROUGHBLOCKLOTPROPERTY TYPEPROPERTY ADDRESS
BROOKLYN / KINGS115516APARTMENT BUILDING392 ST. MARK'S AVENUE
BROOKLYN / KINGS116282APARTMENT BUILDING469 PARK PLACE
BROOKLYN / KINGS116284APARTMENT BUILDING461 PARK PLACE
BROOKLYN / KINGS1163511-3 FAMILY WITH STORE / OFFICE694 FRANKLIN AVENUE
BROOKLYN / KINGS116834APARTMENT BUILDING600 PARK PLACE
BROOKLYN / KINGS12002APARTMENT BUILDING1323 BEDFORD AVENUE
BROOKLYN / KINGS12051APARTMENT BUILDING1055 DEAN STREET
BROOKLYN / KINGS12059APARTMENT BUILDING1126 PACIFIC STREET
BROOKLYN / KINGS120662APARTMENT BUILDING1159 DEAN STREET
BROOKLYN / KINGS121924APARTMENT BUILDING1058 BERGEN STREET
BROOKLYN / KINGS122528COMMERCIAL REAL ESTATE697 PROSPECT PLACE
BROOKLYN / KINGS1231454 FAMILY WITH STORE / OFFICE690 PROSPECT PLACE
BROOKLYN / KINGS123816APARTMENT BUILDING654 PARK PLACE
BROOKLYN / KINGS12403DWELLING ONLY - 6 FAMILY135 ROGERS AVENUE
BROOKLYN / KINGS14842APARTMENT BUILDING916-918 MADISON STREET
BROOKLYN / KINGS158542DWELLING ONLY - 6 FAMILY54 LEWIS AVENUE
BROOKLYN / KINGS166936APARTMENT BUILDING378 LEWIS AVENUE
BROOKLYN / KINGS167854APARTMENT BUILDING194-196 RALPH AVENUE
BROOKLYN / KINGS175541DWELLING ONLY - 4 FAMILY892 MYRTLE AVENUE
BROOKLYN / KINGS179454 FAMILY WITH STORE / OFFICE283 NOSTRAND AVENUE
BROOKLYN / KINGS186621APARTMENT BUILDING52 HERKIMER PLACE
BROOKLYN / KINGS192411APARTMENT BUILDING277 CLASSON AVENUE
BROOKLYN / KINGS196834DWELLING ONLY - 6 FAMILY1088 BEDFORD AVENUE
BROOKLYN / KINGS197010DWELLING ONLY - 6 FAMILY419 CLASSON AVENUE
BROOKLYN / KINGS197043APARTMENT BUILDING101 QUINCY STREET
BROOKLYN / KINGS22951COMMERCIAL REAL ESTATE65 KENT AVENUE
BROOKLYN / KINGS231135APARTMENT BUILDING143 NORTH 8 STREET
BROOKLYN / KINGS234621COMMERCIAL REAL ESTATE381 METROPOLITAN AVENUE
BROOKLYN / KINGS237830APARTMENT BUILDING59 GRAND STREET
BROOKLYN / KINGS23781201COMMERCIAL CONDO UNIT(S)57 GRAND STREET
BROOKLYN / KINGS23781202BULK SALE OF CONDOMINIUMS57 GRAND STREET
BROOKLYN / KINGS239325APARTMENT BUILDING212 GRAND STREET
BROOKLYN / KINGS239326APARTMENT BUILDING214 GRAND STREET
BROOKLYN / KINGS239418DWELLING ONLY - 6 FAMILY252 GRAND STREET
BROOKLYN / KINGS269043DWELLING ONLY - 6 FAMILY30 DRIGGS AVENUE
BROOKLYN / KINGS269819APARTMENT BUILDING273 DRIGGS AVENUE
BROOKLYN / KINGS270224APARTMENT BUILDING145 DRIGGS AVENUE
BROOKLYN / KINGS291844APARTMENT BUILDING307 DEVOE STREET
BROOKLYN / KINGS292241APARTMENT BUILDING871 GRAND STREET
BROOKLYN / KINGS304117APARTMENT BUILDING133-135 LEONARD STREET
BROOKLYN / KINGS3041119APARTMENT BUILDING125 LEONARD STREET
BROOKLYN / KINGS304432APARTMENT BUILDING161 MESEROLE STREET
BROOKLYN / KINGS30557APARTMENT BUILDING236 MESEROLE STREET
BROOKLYN / KINGS315733DWELLING ONLY - 6 FAMILY48 WILSON AVENUE
BROOKLYN / KINGS316527COMMERCIAL REAL ESTATE170 KNICKERBOCKER AVENUE
BROOKLYN / KINGS316549DWELLING ONLY - 6 FAMILY233 JEFFERSON STREET
BROOKLYN / KINGS316550DWELLING ONLY - 6 FAMILY231 JEFFERSON STREET
BROOKLYN / KINGS317130APARTMENT BUILDING82-86 JEFFERSON STREET
BROOKLYN / KINGS317321DWELLING ONLY - 6 FAMILY192 JEFFERSON STREET
BROOKLYN / KINGS317334DWELLING ONLY - 3 FAMILY90 WILSON AVENUE
BROOKLYN / KINGS317341APARTMENT BUILDING191 TROUTMAN STREET
BROOKLYN / KINGS317355DWELLING ONLY - 6 FAMILY163 TROUTMAN STREET
BROOKLYN / KINGS31747DWELLING ONLY - 6 FAMILY71 WILSON AVENUE
BROOKLYN / KINGS317437DWELLING ONLY - 6 FAMILY247 TROUTMAN STREET
BROOKLYN / KINGS317441DWELLING ONLY - 6 FAMILY239 TROUTMAN STREET
BROOKLYN / KINGS317514APARTMENT BUILDING274 JEFFERSON STREET
BROOKLYN / KINGS318614DWELLING ONLY - 6 FAMILY226 TROUTMAN STREET
BROOKLYN / KINGS318620DWELLING ONLY - 6 FAMILY238 TROUTMAN STREET
BROOKLYN / KINGS318622DWELLING ONLY - 6 FAMILY242 TROUTMAN STREET
BROOKLYN / KINGS320718DWELLING ONLY - 6 FAMILY1012 WILLOUGHBY AVENUE
BROOKLYN / KINGS320922DWELLING ONLY - 6 FAMILY1136 WILLOUGHBY AVENUE
BROOKLYN / KINGS324362APARTMENT BUILDING69 STOCKHOLM STREET
BROOKLYN / KINGS324521DWELLING ONLY - 6 FAMILY1358 DEKALB AVENUE
BROOKLYN / KINGS32549APARTMENT BUILDING259 EVERGREEN AVENUE
BROOKLYN / KINGS326913DWELLING ONLY - 6 FAMILY222 STANHOPE STREET
BROOKLYN / KINGS327644DWELLING ONLY - 6 FAMILY167 HARMAN STREET
BROOKLYN / KINGS328619DWELLING ONLY - 6 FAMILY166 HARMAN STREET
BROOKLYN / KINGS328939DWELLING ONLY - 6 FAMILY1361 GREENE AVENUE
BROOKLYN / KINGS329054DWELLING ONLY - 6 FAMILY1397 GREENE AVENUE
BROOKLYN / KINGS332334DWELLING ONLY - 6 FAMILY150 GROVE STREET
BROOKLYN / KINGS33266APARTMENT BUILDING527-531 KNICKERBOCKER AVENUE
BROOKLYN / KINGS337821DWELLING ONLY - 6 FAMILY1418 PUTNAM AVENUE
BROOKLYN / KINGS337822DWELLING ONLY - 6 FAMILY1420 PUTNAM AVENUE
BROOKLYN / KINGS339754DWELLING ONLY - 3 FAMILY199 WEIRFIELD STREET
QUEENS34481APARTMENT BUILDING3-37 ST NICHOLAS AVENUE

SOURCE: Memorandum of Contract, ACRIS


Related Articles

arrow_forward_ios
Mack Real Estate Group's Richard Mack and JPMorgan's Jamie Dimon with a rendering of 123 Melrose Street (Credit: Getty Images and ODA Architecture)

Yoel Goldman sews up long-term funds for Rheingold Brewery Project

Yoel Goldman sews up long-term funds for Rheingold Brewery Project
Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources

Rabsky Group buying Gowanus parcel from Yoel Goldman for $95M: sources
Starwood's Barry Sternlicht and Pacific Retail's Steve Plenge with Parkway Plaza mall in San Diego and the Plaza West Covina mall in Los Angeles (Getty, Starwood, Pacific Retail)

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
From left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Google Maps, iStock)

David Werner misses deposit deadline on $300M deal with All Year

David Werner misses deposit deadline on $300M deal with All Year
Silverstein Properties chairman Larry Silverstein (Getty)

Silverstein Properties raises $30M on Israeli bond market

Silverstein Properties raises $30M on Israeli bond market
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
Clockwise from top left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Credit: Google Maps; iStock)

All Year and David Werner renegotiate deal for $300M Brooklyn portfolio sale

All Year and David Werner renegotiate deal for $300M Brooklyn portfolio sale
arrow_forward_ios

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

Loading...