LISTEN: Chetrit Empire on the Brink

The Chetrits — particularly the Chetrit Group, led by Joseph and Meyer Chetrit — have been under fire lately, casting clouds over the future of a New York City property empire.

On the latest episode of The Real Deal’s “Deconstruct” podcast, reporter and co-host Lilah Burke breaks down to fellow co-host Hannah Kramer the dealings of the historically press-shy real estate family.

The negative headlines have been ramping up as numerous lawsuits have been brought against the family, along with concerning allegations of mismanagement and questionable business practices.

At office towers 500 and 512 Seventh Avenue, a lender accused the borrowing group of “intentional self-dealing,” transferring about $1 million of tenant security deposits to outside accounts; the Chetrits’ partners on the properties pointed to Meyer.

At the Hotel Indigo in Williamsburg, the lender accused the Chetrits of mismanaging the property, failing to pay vendors, not getting permission for a major lease and neglecting the property’s upkeep.

And in October, Meyer and Joseph were arrested for the alleged harassment of tenants in a rent-stabilized building; a criminal defense attorney for Joseph Chetrit said he categorically denies the allegations.

As Burke relays, the Chetrit empire is “not gone, but showing cracks.” What does the future hold for them?

There are promising signs. The family has secured loan workouts and extensions totaling billions, which include properties like the Empire Hotel, Yorkshire Towers in New York and projects in Florida. Time will tell if it’s enough to get things going in a positive direction.

This episode of “Deconstruct” also covers more in the week of real estate news: Gary Barnett’s plan for the Friars Club, a political battle over the next phase of Hudson Yards, the latest CoStar drama and the viral video that thrust the pied-à-terre tax proposal into a more personal stratosphere.

Be sure to check out “Deconstruct” on Spotify, Apple Podcasts and wherever else you listen to podcasts.

— Holden Walter-Warner