Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure

Bluestone Group holds mezz loan on the Tillary Hotel

New York /
Sep.September 17, 2020 06:15 PM
Tillary Hotel at 85 Flatbush Avenue (Image via Kutnicki Bernstein Architects)

Tillary Hotel at 85 Flatbush Avenue (Image via Kutnicki Bernstein Architects)

UPDATED, Sept. 18, 4:33 p.m.: A Downtown Brooklyn hotel that provided housing for the homeless is facing foreclosure.

The 174-key Tillary Hotel at 85 Flatbush Avenue Extension is in default on a mezzanine loan owner Isaac Hager took out to finance the property, according to a notice of a foreclosure auction.

Eli Tabak’s Bluestone Group provided Hager with a $6 million mezzanine loan to finance the purchase last year. Tabak notified Hager in August that a UCC foreclosure auction is scheduled for October for the mezzanine interest.

Hager’s Cornell Realty Management bought the building, which also includes 64 rental apartments, for $95 million in September 2019. But after the coronavirus hit and guests started emptying out, the hotel began taking in homeless men whom the city was moving out of shelters.

That move didn’t sit well with the building’s apartment tenants, and one of Hager’s partners on the building said he regretted the decision to offer hotel rooms as shelter.

“I had no idea what I was getting myself into,” Leo Rubin, whose Rubin Equities owns the property with Hager, told the New York Post in May.

A spokesperson for the city’s Department of Homeless Services said the department is no longer using the building. Hager and Rubin could not be immediately reached for comment.

Tabak also filed to foreclose on a mezzanine loan his company holds on another Hager property: a 130,00-square-foot development site adjacent to the Williamsburg Bridge at 149 Broadway.

Rosewood Realty Group’s Greg Corbin and Aaron Jungreis are marketing the properties for the auction. A representative for the brokers declined to comment.





    Related Articles

    arrow_forward_ios
    Drone Photo by Frank Galasso, Vertical Media
    DeNardo Capital loses Westchester condo project in bankruptcy sale
    DeNardo Capital loses Westchester condo project in bankruptcy sale
    Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
    Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
    Children’s Fund moves to foreclose on Ceruzzi’s UES condo project
    Rialto sues to recover $18M on Diamond District building after owner’s murder-suicide
    Rialto sues to recover $18M on Diamond District building after owner’s murder-suicide
    Rialto sues to recover $18M on Diamond District building after owner’s murder-suicide
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
    Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
    Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
    Inside the fight over New York’s foreclosure laws
    Inside the fight over New York’s foreclosure laws
    Inside the fight over New York’s foreclosure laws
    1 St. Mark’s Place heads for foreclosure
    1 St. Mark’s Place heads for foreclosure
    1 St. Mark’s Place heads for foreclosure
    Distrikt Hotel and Stephen Ellman of Zeichner Ellman & Krause (Tripadvisor, Flintlock, ZEK)
    Midtown’s Distrikt Hotel heads for foreclosure as receiver named
    Midtown’s Distrikt Hotel heads for foreclosure as receiver named
    arrow_forward_ios

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

    Loading...