Since Yoel Goldman’s All Year Management had its Israeli bonds delisted at the end of last year, the Brooklyn developer’s troubled assets have drawn interest from several investor groups. Now, one of New York’s most well-known developers has thrown its hat into the ring.
Silverstein Properties has submitted a non-binding proposal to purchase Phase I of All Year’s Denizen Bushwick at 54 Noll Street, the companies disclosed to the Tel Aviv Stock Exchange on Wednesday.
The proposed transaction includes a cash payment of $170 million, plus the issuance of a new $30 million bond series with a five-year term. The Phase I property currently serves as collateral for All Year’s Series E bonds, while Phase II at 123 Melrose Street is encumbered by senior and mezzanine loans from JPMorgan and Mack Real Estate Credit Strategies, both of which are in default.
“Silverstein is well aware of the close connection between the two phases of the Bushwick project and the need for a close cooperation with its Phase II lenders,” the proposal states. Silverstein also notes that it has a long-term relationship with both JPMorgan and Mack, and that it is prepared to work with them and with Israeli bondholders for a mutually beneficial outcome.
“In fact, Silverstein has already contacted Mack in connection with the proposed acquisition of the asset, and Mack has expressed a strong willingness to cooperate with Silverstein, with the common goal of maximizing the value of the Asset,” the proposal says.
Silverstein declined to comment.
The developer is no stranger to Israeli capital markets, and currently has two bond series listed in Tel Aviv. The World Trade Center developer’s bonds have been well received by investors, even as other issuers have struggled amid the pandemic, as well as earlier market tumult. Both of Silverstein’s bond series are currently trading near 100 cents on the dollar.
The mezzanine borrower LLC for Phase II of Denizen filed for Chapter 11 bankruptcy on Monday, as part of All Year’s efforts to prevent Mack from foreclosing on the property.
More than a year ago, All Year announced that it was nearing a $675 million refinancing for both phases of the Denizen, which would have been a major boon for the company’s finances. But the pandemic appears to have complicated matters and the deal never closed, although rating documents for a potential deal were published in the fall.
Other groups that have submitted restructuring proposals for All Year’s assets include Criterion Real Estate Capital and Downtown Capital Partners; Madison Capital and Meadow Partners; Dabby Investments; and Churchill Real Estate and Graph Group.