Madison Realty Capital aims to foreclose on Hello Living’s 1580 Nostrand Ave

Residential developer defaulted on $3 million loan in Brooklyn

New York /
Aug.August 04, 2021 10:26 AM
Madison Realty Capital's Josh Zegen, 1580 Nostrand Avenue and Hello Living CEO Eli Karp (Madison Realty Capital, Hello Living)

Madison Realty Capital’s Josh Zegen, 1580 Nostrand Avenue and Hello Living CEO Eli Karp (Madison Realty Capital, Hello Living)

Hello Living will be saying goodbye to its residential project at 1580 Nostrand Avenue if Madison Realty Capital succeeds in its foreclosure attempt.

The rights for a 100 percent ownership stake in the Brooklyn apartment development are slated for a Uniform Commercial Code foreclosure sale Sept. 2, Commercial Observer reported.

Hello Living, helmed by Eli Karp, is developing the 210-unit luxury rental building in Prospect-Lefferts Gardens. Of the units, 95 are said to be near completion.

But last year, Hello Living defaulted on a $3 million mezzanine loan from 1580 Nostrand Avenue LLC, a shell company of Madison Realty Capital, led by Josh Zegen, Brian Shatz and Adam Tantleff.

The project dates back to at least 2014, when plans for a 23-story building with 153 apartments were announced. Hello Living paid $13 million that year for the property, which had sold for $4 million in 2012.

In 2018, YIMBY reported that the project’s height was scaled back drastically to just six stories. Still, Hello Living increased the number of apartments. A community facility is also part of the plan.

Hello Living calls the project “Hello Nostrand.” On its website, the developer says it will be completed next year.

[CO] — Holden Walter-Warner





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