Avi Philipson–led group to buy William Vale hotel

Bondholders rejected offer from Brooklyn landlord Zelig Weiss

New York /
May.May 24, 2022 04:04 PM
William Vale Hotel in Williamsburg, Brooklyn (iStock, William Vale, Illustration by Kevin Cifuentes for The Real Deal)

William Vale Hotel in Williamsburg, Brooklyn (iStock, William Vale, Illustration by Kevin Cifuentes for The Real Deal)

The William Vale hotel drama appears to be coming to an end.

A venture led by health care executive Avi Philipson is set to buy the debt and an equity stake in the Williamsburg hotel from All Year Holdings’ Israeli bondholders. The bondholders approved his proposal earlier this month and the deal is set to close in July, according to a filing in bankruptcy court.

Philipson emerged with a bid at the 11th hour after a deal with Brooklyn landlord Zelig Weiss seemed all but done.

It was Weiss’s second attempt to take control of the spaceship-looking office and hotel complex in northern Brooklyn. Weiss had a 50 percent stake in the property and had been accused by an All Year entity of siphoning money out of the property.

The bondholders ultimately went with Philipson’s offer to buy the debt on the property for $157 million. Philipson and his partners, which include Whalley Capital’s Stephen Gorodetsky, will also receive a 50 percent equity stake in the property, according to the filing. The Philipson group also increased by $2 million the principal on debt it plans to issue to pay unsecured claimholders.

After Philipson’s group submitted its proposal, Weiss submitted his own, which the bondholders rejected, according to a filing.

“The William Vale is a unique property with an iconic design in a superb location,” said Gorodetsky in an email. “We look forward to it realizing its full potential through lease-up of the retail and office space.”

The William Vale was co-developed by Weiss and Yoel Goldman of All Year in 2016. The Brooklyn landlords then had a falling out and sued each other. Goldman and All Year later ran into financial trouble, facing foreclosures, and in 2020 Goldman had to cede decision-making to restructuring officers.

The William Vale was a crown jewel of All Year’s portfolio. A number of investors attempted to make an offer for it including Monarch Alternative Capital and Richard Wagman’s Madison Capital.

Philipson has gone after All Year’s real estate before: His Graph Group and Rubin Schron’s Cammeby’s International recently reached a deal to buy All Year’s portfolio of more than 100 properties in Brooklyn out of bankruptcy.

Philipson, whose Twitter photo does not show his face, operates nursing homes and holds an ownership interest in the Cold Springs Hills Center for Nursing and Rehabilitation in Woodbury, New York.

His father, Bent Philipson, is a controversial operator of nursing homes on Long Island and throughout the country.





    Related Articles

    arrow_forward_ios
    William Vale (iStock) New York, Hotelel
    New bidder emerges for William Vale in never-ending saga
    New bidder emerges for William Vale in never-ending saga
    The William Vale Hotel in Williamsburg (The William Vale, iStock/Illustration by Steven Dilakian for The Real Deal)
    Zelig Weiss returns with bid to buy William Vale in Williamsburg
    Zelig Weiss returns with bid to buy William Vale in Williamsburg
    22 Skillman Street (Google Maps, iStock)
    William Vale developer Zelig Weiss plans resi project near Navy Yard
    William Vale developer Zelig Weiss plans resi project near Navy Yard
    Zelig Weiss, All Year near deal to end William Vale legal mess
    Zelig Weiss, All Year near deal to end William Vale legal mess
    Zelig Weiss, All Year near deal to end William Vale legal mess
    Meridian Capital’s Ralph Herzka with 165 Central Avenue, 198 Scholes Street, 11 Gunther Place in Brooklyn (Getty, Google Maps, Apartments)
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    Meridian Capital could get exclusive on All Year’s $1B portfolio
    Troubled Brooklyn landlord All Year files for Chapter 11
    Troubled Brooklyn landlord All Year files for Chapter 11
    Troubled Brooklyn landlord All Year files for Chapter 11
    273 Skillman Street, 83 Nostrand Avenue and 1358 Dekalb Avenue with Andrew Farkas of Island Capital (Google Maps, Getty)
    All Year’s massive Brooklyn portfolio in distress, sparking bidding war
    All Year’s massive Brooklyn portfolio in distress, sparking bidding war
    225-227 Grand Street in Williamsburg with Toby Moskovits and Michael Lichtenstein of Heritage Equity Partners (Google Maps, Heritage)
    All Year loses stake in troubled Williamsburg property
    All Year loses stake in troubled Williamsburg property
    arrow_forward_ios

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

    Loading...