Icon Realty Capital will take charge of restructuring Brookland Capital’s troubled property portfolio.
Brookland has hired the firm to take charge of about 15 properties that are in different stages of development, according to Commercial Observer. TerraCRG is marketing several Brookland properties as well, and SME Capital Ventures is in contract to purchase 691 Marcy Avenue for about $22 million.
Brookland has been in financial trouble dating back to at least November, when CEO Boaz Gilad told his Israeli bondholders that he would not meet upcoming payment deadlines. Lenders and investors in Israel and New York have both sued the company since then, and Goldman Sachs has started foreclosure proceedings on the company’s property at 929 Atlantic Avenue in Clinton Hill.
Icon is marketing properties that range from six to 60 units. Company principal Marc Shulman told the Observer that investors have expressed interest in several of the buildings, and they should have an exit value of about $260 million. However, they do not view selling the properties as the main option.
“Ideally, we want to recapitalize the projects and help Boaz see them to the finish line,” Shulman said. [CO] – Eddie Small