Fortress files to foreclose on Toby Moskovits’ Bushwick hotel site

LLC behind planned 155-unit hotel declared bankruptcy last summer

New York /
Jun.June 02, 2021 12:45 PM
Toby Moskovits (Google Maps, Supreme Court of the State of New York)

Toby Moskovits (Google Maps, Supreme Court of the State of New York)

Eleven months after it filed for bankruptcy, changes are afoot at an inactive Bushwick hotel development site owned by Toby Moskovits’ Heritage Equity Partners.

Fortress Investment Group has filed to foreclose on the property at 232 Seigel Street, in conjunction with a court order allowing Heritage to pay off the mezzanine debt, PincusCo reported.

“The COVID-19 Emergency Protect Our Small Businesses Act of 2021 is not applicable to this matter,” Fortress notes in its complaint, “since the subject property is vacant and unimproved, and was intended to be used exclusively as an approximately 155 room hotel with amenities, community space and parking.”

The $5.25 million senior loan is guaranteed by Moskovits, Michael Lichtenstein and Moshe Dov Schweid. According to the complaint, the total amount owed now comes out to $8.2 million with interest and penalties.

The Seigel Street property is part of Heritage’s Bushwick Generator development, which also includes creative and tech offices at 215 Moore Street. The complex has been the subject of numerous legal disputes between Moskovits’ firm and lenders, whom Moskovits accuses of predatory lending practices.

Last summer, a judge allowed the appointment of a receiver for the Moore Street property. The Seigel Street property filed for Chapter 11 bankruptcy protection a month later after a prospective buyer failed to close due to the pandemic, according to PincusCo. Elsewhere in Brooklyn, Moskovits’ Williamsburg Hotel filed for bankruptcy in February.

[PincusCo] — Kevin Sun


Related Articles

arrow_forward_ios
From left: a rendering of 286 Rider Avenue, Ben Harlev and Heritage Equity Partners' Toby Moskovits (Fischer Makooi Architect, Moskovits via Sasha Maslov, Ben Harlev via NadlanCityNY)
Lender tries to seize Toby Moskovits’ Bronx apartment project
Lender tries to seize Toby Moskovits’ Bronx apartment project
Venn co-founders Or Bokobza and Chen Avni (Photos via Owler, The Centre for Conscious Design)
This startup creates community to help landlords retain tenants
This startup creates community to help landlords retain tenants
HRI executive director Aaron Carr and 700 West 192nd Street (Google Maps, Facebook)
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
420 Stockholm Street in Bushwick with State Attorney General Letitia James (Google Maps, Getty)
Ownership dispute at Brooklyn rental puts affordable tax break at risk, city says
Ownership dispute at Brooklyn rental puts affordable tax break at risk, city says
(The Denizen, Facebook via Jonathan Braun)
All Year recants allegation against Trump-pardoned drug smuggler
All Year recants allegation against Trump-pardoned drug smuggler
Silverstein Properties' Larry Silverstein and Phase I of the Denizen Bushwick at 54 Noll Street (Getty, Google Maps/Illustration by Kevin Rebong for The Real Deal)
Silverstein offers to buy half of All Year’s Bushwick rental complex
Silverstein offers to buy half of All Year’s Bushwick rental complex
The bankruptcy filing was made to protect the value of the Denizen. (The Denizen)
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
Heritage Equity Partners' Toby Moskovits and the Williamsburg Hotel at 96 Wythe Avenue (Moskovits via Sasha Maslov; Hotel via Williamsburg Hotel)
Toby Moskovits’ Williamsburg Hotel enters bankruptcy
Toby Moskovits’ Williamsburg Hotel enters bankruptcy
arrow_forward_ios

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

Loading...