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
From left: Isaac Zion with JMC Holdings' Matthew Cassin (left) and David Taylor (right) (Photos via SL Green; JMC)
Former SL Green exec Isaac Zion joins Acram Group
Former SL Green exec Isaac Zion joins Acram Group
(Photo illustration by The Real Deal)
Inside mall owner Namdar’s rapid growth story
Inside mall owner Namdar’s rapid growth story
15 Park Row (Google Maps)
J&R Music founders sell Park Row apartment tower for $140M
J&R Music founders sell Park Row apartment tower for $140M
Claudio Del Vecchio has owned Brooks Brothers since 2001. (Getty)
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Brooks Brothers’ Madison Ave store could give way to Midtown East tower
Gov. Andrew Cuomo (Getty)
Industry reacts to Cuomo’s proposed commercial eviction ban
Industry reacts to Cuomo’s proposed commercial eviction ban
Merchants Hospitality Inks Club Deal at Cachet Hotel (Google Maps, Playboy Club)
Nightlife veteran John Blair inks deal for Hell’s Kitchen club
Nightlife veteran John Blair inks deal for Hell’s Kitchen club
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
Financial disclosures show extent of Trump Org losses
Developers pitch New York City casino
Developers pitch New York City casino
Developers pitch New York City casino
arrow_forward_ios

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

Loading...