Simad Begins Selling Summer Camps

For most people, summer camp is about relay races, color wars and making memories. But recently, it’s the subject of one of the strangest real estate stories of the year.

The dismantling of the Shabsels brothers’ summer camp empire took another step this week as two camps found buyers through the bankruptcy process. Warner Bros. Discovery CEO David Zaslav agreed to serve as the stalking horse bidder for Mohawk Day Camp in Westchester with a $68 million offer, while Camp Achim in the Catskills reached a $7 million sale agreement with its longtime operator. More camps are expected to follow as one of the country’s largest privately owned camp portfolios is carved up piece by piece.

The sales are the latest chapter in a collapse that has left investors, lenders and camp families searching for answers.

David and Michael Shabsels spent years quietly assembling roughly 30 summer camps across the Northeast and beyond, transforming what had long been a fragmented, family-owned business into an institutional real estate portfolio. Their holdings included well-known camps such as Mohawk Day Camp in New York and Camp Blue Star in North Carolina, serving more than 20,000 campers each summer. They paired those operations with a broader commercial real estate portfolio that included office, retail and hospitality properties.

On paper, the business looked surprisingly healthy. The camps generated steady revenue, catered largely to affluent families and were valued at roughly $466 million in late 2025. Mohawk alone was projected to produce nearly $9.4 million in annual net operating income.

But beneath the surface, the empire had become extraordinarily leveraged.

The brothers tapped Israel’s bond market for roughly $214 million, joining a long list of U.S. developers who sought cheaper capital overseas. Then came another layer of financing through more than $100 million in merchant cash advance loans, one of the most expensive forms of borrowing available. Court filings later revealed those lenders held sweeping rights to withdraw funds directly from company accounts, creating a liquidity crisis when payments faltered.

The unraveling happened quickly. Just months after completing the Israeli bond raise, Simad disclosed it would default on its first payment. The company also revealed that $34 million had been transferred to entities controlled by the brothers and could not be returned. Israeli regulators opened an investigation, the bonds collapsed in value and dozens of affiliated companies landed in Chapter 11.

The saga offers a rare look at what happens when a traditionally family-run business turns into a financial product.

For decades, summer camps were largely owned by operators who ran them themselves. The Shabselses took a different approach, consolidating dozens of camps into a portfolio, separating the real estate from the operating businesses, layering on debt and eventually tapping Israel’s bond market for institutional capital. In many ways, they treated camps the way investors have long treated hotels, nursing homes and other operating real estate.

And the underlying business wasn’t necessarily broken. Many of the camps remained profitable and attracted loyal families willing to pay premium tuition. What ultimately failed was the financing behind it.

Now the market will determine what these camps are really worth.

There was plenty of other news this week. Zohran Mamdani is tightening the leash on landlords, the Pfizer building scare tests Midtown East’s biggest conversion bet and Compass’ market power could lead to legal challenges. These stories and more below.

“Rental Ripoff” report plots path to stronger enforcement

Mayor Zohran Mamdani’s administration is proposing tougher penalties, expanded inspections and higher fees for landlords as part of its new “Rental Ripoff” report. The recommendations also advance the city’s strategy of targeting troubled buildings for potential transfers to alternative ownership.

Pfizer building’s column scare tests Midtown East’s biggest conversion bet

Despite last week’s structural scare at the Pfizer office-to-residential conversion, industry insiders say the incident is unlikely to hurt long-term leasing demand for the 1,600-unit project. The bigger question is whether construction delays could affect the project’s timeline and financing as MetroLoft and David Werner race to stabilize the site.

How Compass’ new size could spell new problems

A proposed class action over Compass’ $495 transaction fee could become an early legal test of the brokerage’s growing market power following its acquisition of Anywhere Real Estate. While the case centers on whether the fee was properly disclosed, it also underscores mounting scrutiny over Compass’ pricing policies and market dominance.

From “fixed-rate is for suckers” to “no return of capital”: A timeline of S2 Capital’s fall from grace

Scott Everett got into real estate as a house flipper before becoming a value-add multifamily investor and founding S2 at 23 years old. Interest rates were low, everyone was moving to the Sun Belt, and S2 took off. S2 kept telling its success story long after rising interest rates and unfavorable fundamentals stopped value-add peers in their tracks. Equity wipeouts for S2’s REIT and $400 million first fund have turned “fixed-rate is for suckers” into a jeering refrain for angry investors and #RETwit users who’ve watched the whole thing unfold.

Zeckendorf family accuses supermarket moguls of selling pilfered art

The Zeckendorf family sued the heirs of the Weis Markets founders, alleging they auctioned off a Pierre Soulages painting stolen from the family decades ago. The family is seeking the nearly $5 million in auction proceeds, claiming documents tied to the artwork’s ownership were fabricated.

Elon Musk’s Austin area empire triples land holdings

Entities tied to Elon Musk have nearly tripled their Bastrop County land holdings to roughly 2,000 acres, expanding the footprint of his growing Texas business empire. While the intended use of the newly acquired land remains unclear, the purchases continue Musk’s rapid investment around Austin.

Hilton & Hyland exodus to Keller Williams?

California licensing records show 16 of Hilton & Hyland’s 17 agents transferred to Keller Williams Hollywood Hills, signaling the luxury brokerage may no longer operate independently. The move caps years of decline following co-founder Jeff Hyland’s death and another round of consolidation in luxury residential brokerage.

$1M rent, $100 steaks: Inside Coconut Grove’s booming restaurant scene

Coconut Grove’s evolution into one of Miami’s hottest dining scenes came at a cost, as soaring rents have threatened or shut down restaurants that helped transform the neighborhood into a dinner destination. The area once seen as a bohemian enclave had average direct asking retail rents of more than $110 per square foot in the second quarter, one of the highest of any Miami-Dade submarket, according to Colliers.