Two Brooklyn hotel projects file for bankruptcy in one week

Both projects have ties to Cornell Realty Management

New York /
Dec.December 23, 2020 04:00 PM
Renderings of 159 Broadway in Williamsburg and Tillary Hotel at 85 Flatbush Avenue in Downtown Brooklyn (Photos via Stonehill Taylor; The Tillary Hotel)

Renderings of 159 Broadway in Williamsburg and Tillary Hotel at 85 Flatbush Avenue in Downtown Brooklyn (Photos via Stonehill Taylor; The Tillary Hotel)

Two Brooklyn hotel projects with ties to Isaac Hager’s Cornell Realty Management have sought Chapter 11 bankruptcy protection in the span of a week.

The owners of a planned 26-story hotel and residential tower at 159 Broadway in Williamsburg — 159 Broadway Member and WB Bridge Hotel — have filed for bankruptcy, according to Bloomberg News. One of the owners, 159 Broadway Member, shares an address with Cornell Realty. The 235-room project, situated across the street from Peter Luger Steakhouse, was set to open in 2021. Construction had already begun on the building, which was also set to include residential space.

And late last week, 85 Flatbush RHO Mezz, which is reportedly to be the owner of Tillary Hotel in Downtown Brooklyn, filed for bankruptcy.

Cornell Realty, in partnership with developer Lipa Rubin, purchased the 174-room hotel and 64-unit apartment building at 85 Flatbush Avenue Extension in September 2019. But the property faced foreclosure about a year later because of the pandemic-driven downturn that devastated the hospitality industry.

The ownership has been apparently transferred to 85 Flatbush RHO Mezz, whose address is in care of GC Realty Advisors in Hollywood, Florida, according to the Chapter 11 petition filed with the U.S. Bankruptcy Court for the Southern District of New York. [Bloomberg News] — Akiko Matsuda


Related Articles

arrow_forward_ios
Deconstruct Podcast
Deconstructing the single-family rental: New podcast episode out now
Deconstructing the single-family rental: New podcast episode out now
Birch Group President Mark Meisner and 101 Hudson Street in Jersey City, NJ (The Birch Group, Google Maps)
Birch Group paying $380M for large Jersey City office
Birch Group paying $380M for large Jersey City office
Main-MainImage_.psd FT-Thumbnail_.psd
Blackstone to net $4B profit in sale of Vegas casino
Blackstone to net $4B profit in sale of Vegas casino
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
Oxford lands $1.4B CMBS financing for $2.2B KKR industrial portfolio purchase
290 Motor Parkway, the office of Flexible Business Systems (Getty, Google Maps)
Long Island IT company wants to build ice rink for employees
Long Island IT company wants to build ice rink for employees
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
NJ construction official accused of siphoning funds from developers’ account
NYC City Council passes bill forcing hotels to dish out severance pay
NYC City Council passes bill forcing hotels to dish out severance pay
NYC City Council passes bill forcing hotels to dish out severance pay
Vorea, Domain and L+M close on $88M LIC development site
Vorea, Domain and L+M close on $88M LIC development site
Vorea, Domain and L+M close on $88M LIC development site
arrow_forward_ios

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

Loading...