Camber Property buys bankrupt Hell’s Kitchen building for $40M

Sale concludes Chapter 11 proceedings

New York /
Jun.June 10, 2021 05:03 PM
Camber Property Group Principals Andrew Moelis and Rick Gropper with 440 West 41st Street (Caro Enterprises, Inc.)

Camber Property Group Principals Andrew Moelis and Rick Gropper with 440 West 41st Street (Caro Enterprises, Inc.)

UPDATED, June 11, 6:11 p.m.: Workforce housing developer Camber Property Group acquired a Hell’s Kitchen apartment building out of bankruptcy for $40.3 million.

The acquisition brought an end to the five-year reorganization process involving the 96-unit building at 440 West 41st Street, according to public records.

In early 2016, the entity that owns the building fell behind on payments for a $28 million mortgage issued by Stabilis Capital Management. David Goldwasser of GC Realty Advisors, who specializes in debt workouts, was hired and filed for bankruptcy protection under Chapter 11 in March 2016, according to the filing. Goldwasser declined to comment.

At the same time, the owner also was facing more than $2 million in fines for illegally operating the building as a short-term rental facility, according to public records. But as part of the bankruptcy process, the city reduced the penalty payments to $375,000 under the condition that the property be brought up to code and cease all illegal hotel operations. The Mayor’s Office of Special Enforcement, which handled the case, did not immediately respond to a request for comment.

Co-founded by L+M alumni Rick Gropper and Andrew Moelis, Camber Property Group has developed and rehabilitated dozens of mixed-income and workforce housing projects in the city. The company declined to comment on the Hell’s Kitchen acquisition.

Correction: A previous version of this article said that Ben Zion Suky led the owner entity that filed for bankruptcy. That was incorrect. He sold the property in 2015, and the loan default came under a different ownership.





    Related Articles

    arrow_forward_ios
    A rendering of 165 Broome Street (Credit: Handel Architects)
    Nonprofit plans affordable housing development near Essex Crossing
    Nonprofit plans affordable housing development near Essex Crossing
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    The State Building and Construction Trades Council president Robbie Hunter (CA Building Trades, iStock)
    California could require union labor on all affordable housing projects
    California could require union labor on all affordable housing projects
    NYC’s office sublease surge slows as tenants move to reoccupy space
    NYC’s office sublease surge slows as tenants move to reoccupy space
    NYC’s office sublease surge slows as tenants move to reoccupy space
    Renderings of The Eliza Apartments at the Redeveloped Inwood Library (New York Housing Conference)
    Inwood affordable housing project moves forward after rezoning fight
    Inwood affordable housing project moves forward after rezoning fight
    611 St. Johns Place, Brooklyn, NY (Getty)
    Workforce Housing Group solar deal will also pay for broadband
    Workforce Housing Group solar deal will also pay for broadband
    322 Grand Concourse in the Bronx and Martin Nussbaum of Slate Property Group and Scale Lending (Google Maps, Slate)
    Bronx multifamily development gets $63M loan
    Bronx multifamily development gets $63M loan
    Council member Rafael Salamanca Jr and Public Advocate Jumaane Williams (Getty, Facebook via Salamanca Jr.)
    City Council to require racial equity reports for rezonings
    City Council to require racial equity reports for rezonings
    arrow_forward_ios

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

    Loading...