Under pressure: Brookland Capital selling Marcy Ave resi building for $22M

SME Capital is looking to purchase the property, according to sources

Boaz Gilad and 691 Marcy Avenue in Brooklyn (Credit: Brookland Capital)
Boaz Gilad and 691 Marcy Avenue in Brooklyn (Credit: Brookland Capital)

Days after Brookland Capital’s Boaz Gilad signaled that he might have to part with some of his properties to satisfy bondholders in Tel Aviv, SME Capital Ventures is closing in on one of his rental Brooklyn buildings, sources tell The Real Deal.

SME is looking to purchase 691 Marcy Avenue, an eight-story, 41-unit rental building in Bedford-Stuyvesant for $22 million. Brookland Capital had purchased the site in 2014 for $4.5 million.

In an email, Gilad said only that the deal was not yet in contract.

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The prolific developer recently stepped down from Brookland Upreal Ltd., a company incorporated in the British Virgin Islands that issues bonds in Israel, amid considerable pressure from bondholders. The development firm, arguably the busiest in Brooklyn, stalled trading on its bonds in Tel Aviv after a November announcement that issues with liquidity would prevent it from meeting its debt obligations.

New Jersey landlord Ronel Ben-Dov has been appointed as the new head of Brookland Upreal, but he has yet to be confirmed. The authority he will have over what Brookland can do with its projects is unclear, but SME, managed by Eran Silverberg, is waiting for his appointment to become official before finalizing the contract, sources said.

He previously told The Real Deal that he was considering selling some properties to help Brookland Capital get through its current difficulties. Other sites on the market include 99 Grove Street in Bushwick, 227 Clarkson Avenue in Prospect-Lefferts Gardens and 1312 Lincoln Place in Crown Heights.