All Year Management’s massive $346 million multifamily portfolio sale appears to have fallen victim to the economic fallout of coronavirus, as financing tightens and tenants struggle to pay rent.
An agreement to sell the portfolio, which covers 73 multifamily buildings in Brooklyn and one in Queens, was announced by Yoel Goldman’s firm two months ago on the Tel Aviv Stock Exchange. The deal was expected to generate about $59 million in positive cash flow for All Year after mortgages were paid off, and the buyer provided a $15 million down payment.
Although the prospective buyer was not named in the Tel Aviv disclosures, New York City property records show that prolific but low-profile Brooklyn real estate investor David Werner was on the other side of the deal.
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The sale was set to close within 60 days of the agreement — or by Tuesday, May 5 — but Werner was apparently unable to line up acquisition financing in time, according to a new disclosure published Wednesday. The buyer asked for an extension, but without an additional $5 million extension fee as required by the agreement. All Year denied the request.
On Tuesday, Werner informed Goldman’s firm that the deal was off, and accused All Year of violating the terms of the agreement — which would require the seller to return the $15 million down payment. Alleged violations include failure to provide information about properties in the portfolio, reducing rents for tenants and entering into contractual agreements with tenants without Werner’s approval.
Werner is known as one of the most active syndicators of big real estate deals in New York, making quick and lucrative exits shortly after closing deals.
The scrapped sale included 611 residential units and 18 commercial units. Elsewhere in its portfolio, All Year announced in February that it was close to securing a $675 million refinancing for the Denizen Bushwick, a massive mixed-use project on the former Rheingold Brewery site. That deal has not closed, according to property records.
The developer has also announced that it is seeking to sell or refinance the William Vale hotel and office complex to pay down Israeli bonds. The hotel is currently closed due to the coronavirus.
All Year did not respond to a request for comment. Werner could not be reached for comment.
List of Properties in All Year’s Scrapped Portfolio Sale
BOROUGH | BLOCK | LOT | PROPERTY TYPE | PROPERTY ADDRESS |
---|---|---|---|---|
BROOKLYN / KINGS | 1155 | 16 | APARTMENT BUILDING | 392 ST. MARK'S AVENUE |
BROOKLYN / KINGS | 1162 | 82 | APARTMENT BUILDING | 469 PARK PLACE |
BROOKLYN / KINGS | 1162 | 84 | APARTMENT BUILDING | 461 PARK PLACE |
BROOKLYN / KINGS | 1163 | 51 | 1-3 FAMILY WITH STORE / OFFICE | 694 FRANKLIN AVENUE |
BROOKLYN / KINGS | 1168 | 34 | APARTMENT BUILDING | 600 PARK PLACE |
BROOKLYN / KINGS | 1200 | 2 | APARTMENT BUILDING | 1323 BEDFORD AVENUE |
BROOKLYN / KINGS | 1205 | 1 | APARTMENT BUILDING | 1055 DEAN STREET |
BROOKLYN / KINGS | 1205 | 9 | APARTMENT BUILDING | 1126 PACIFIC STREET |
BROOKLYN / KINGS | 1206 | 62 | APARTMENT BUILDING | 1159 DEAN STREET |
BROOKLYN / KINGS | 1219 | 24 | APARTMENT BUILDING | 1058 BERGEN STREET |
BROOKLYN / KINGS | 1225 | 28 | COMMERCIAL REAL ESTATE | 697 PROSPECT PLACE |
BROOKLYN / KINGS | 1231 | 45 | 4 FAMILY WITH STORE / OFFICE | 690 PROSPECT PLACE |
BROOKLYN / KINGS | 1238 | 16 | APARTMENT BUILDING | 654 PARK PLACE |
BROOKLYN / KINGS | 1240 | 3 | DWELLING ONLY - 6 FAMILY | 135 ROGERS AVENUE |
BROOKLYN / KINGS | 1484 | 2 | APARTMENT BUILDING | 916-918 MADISON STREET |
BROOKLYN / KINGS | 1585 | 42 | DWELLING ONLY - 6 FAMILY | 54 LEWIS AVENUE |
BROOKLYN / KINGS | 1669 | 36 | APARTMENT BUILDING | 378 LEWIS AVENUE |
BROOKLYN / KINGS | 1678 | 54 | APARTMENT BUILDING | 194-196 RALPH AVENUE |
BROOKLYN / KINGS | 1755 | 41 | DWELLING ONLY - 4 FAMILY | 892 MYRTLE AVENUE |
BROOKLYN / KINGS | 1794 | 5 | 4 FAMILY WITH STORE / OFFICE | 283 NOSTRAND AVENUE |
BROOKLYN / KINGS | 1866 | 21 | APARTMENT BUILDING | 52 HERKIMER PLACE |
BROOKLYN / KINGS | 1924 | 11 | APARTMENT BUILDING | 277 CLASSON AVENUE |
BROOKLYN / KINGS | 1968 | 34 | DWELLING ONLY - 6 FAMILY | 1088 BEDFORD AVENUE |
BROOKLYN / KINGS | 1970 | 10 | DWELLING ONLY - 6 FAMILY | 419 CLASSON AVENUE |
BROOKLYN / KINGS | 1970 | 43 | APARTMENT BUILDING | 101 QUINCY STREET |
BROOKLYN / KINGS | 2295 | 1 | COMMERCIAL REAL ESTATE | 65 KENT AVENUE |
BROOKLYN / KINGS | 2311 | 35 | APARTMENT BUILDING | 143 NORTH 8 STREET |
BROOKLYN / KINGS | 2346 | 21 | COMMERCIAL REAL ESTATE | 381 METROPOLITAN AVENUE |
BROOKLYN / KINGS | 2378 | 30 | APARTMENT BUILDING | 59 GRAND STREET |
BROOKLYN / KINGS | 2378 | 1201 | COMMERCIAL CONDO UNIT(S) | 57 GRAND STREET |
BROOKLYN / KINGS | 2378 | 1202 | BULK SALE OF CONDOMINIUMS | 57 GRAND STREET |
BROOKLYN / KINGS | 2393 | 25 | APARTMENT BUILDING | 212 GRAND STREET |
BROOKLYN / KINGS | 2393 | 26 | APARTMENT BUILDING | 214 GRAND STREET |
BROOKLYN / KINGS | 2394 | 18 | DWELLING ONLY - 6 FAMILY | 252 GRAND STREET |
BROOKLYN / KINGS | 2690 | 43 | DWELLING ONLY - 6 FAMILY | 30 DRIGGS AVENUE |
BROOKLYN / KINGS | 2698 | 19 | APARTMENT BUILDING | 273 DRIGGS AVENUE |
BROOKLYN / KINGS | 2702 | 24 | APARTMENT BUILDING | 145 DRIGGS AVENUE |
BROOKLYN / KINGS | 2918 | 44 | APARTMENT BUILDING | 307 DEVOE STREET |
BROOKLYN / KINGS | 2922 | 41 | APARTMENT BUILDING | 871 GRAND STREET |
BROOKLYN / KINGS | 3041 | 17 | APARTMENT BUILDING | 133-135 LEONARD STREET |
BROOKLYN / KINGS | 3041 | 119 | APARTMENT BUILDING | 125 LEONARD STREET |
BROOKLYN / KINGS | 3044 | 32 | APARTMENT BUILDING | 161 MESEROLE STREET |
BROOKLYN / KINGS | 3055 | 7 | APARTMENT BUILDING | 236 MESEROLE STREET |
BROOKLYN / KINGS | 3157 | 33 | DWELLING ONLY - 6 FAMILY | 48 WILSON AVENUE |
BROOKLYN / KINGS | 3165 | 27 | COMMERCIAL REAL ESTATE | 170 KNICKERBOCKER AVENUE |
BROOKLYN / KINGS | 3165 | 49 | DWELLING ONLY - 6 FAMILY | 233 JEFFERSON STREET |
BROOKLYN / KINGS | 3165 | 50 | DWELLING ONLY - 6 FAMILY | 231 JEFFERSON STREET |
BROOKLYN / KINGS | 3171 | 30 | APARTMENT BUILDING | 82-86 JEFFERSON STREET |
BROOKLYN / KINGS | 3173 | 21 | DWELLING ONLY - 6 FAMILY | 192 JEFFERSON STREET |
BROOKLYN / KINGS | 3173 | 34 | DWELLING ONLY - 3 FAMILY | 90 WILSON AVENUE |
BROOKLYN / KINGS | 3173 | 41 | APARTMENT BUILDING | 191 TROUTMAN STREET |
BROOKLYN / KINGS | 3173 | 55 | DWELLING ONLY - 6 FAMILY | 163 TROUTMAN STREET |
BROOKLYN / KINGS | 3174 | 7 | DWELLING ONLY - 6 FAMILY | 71 WILSON AVENUE |
BROOKLYN / KINGS | 3174 | 37 | DWELLING ONLY - 6 FAMILY | 247 TROUTMAN STREET |
BROOKLYN / KINGS | 3174 | 41 | DWELLING ONLY - 6 FAMILY | 239 TROUTMAN STREET |
BROOKLYN / KINGS | 3175 | 14 | APARTMENT BUILDING | 274 JEFFERSON STREET |
BROOKLYN / KINGS | 3186 | 14 | DWELLING ONLY - 6 FAMILY | 226 TROUTMAN STREET |
BROOKLYN / KINGS | 3186 | 20 | DWELLING ONLY - 6 FAMILY | 238 TROUTMAN STREET |
BROOKLYN / KINGS | 3186 | 22 | DWELLING ONLY - 6 FAMILY | 242 TROUTMAN STREET |
BROOKLYN / KINGS | 3207 | 18 | DWELLING ONLY - 6 FAMILY | 1012 WILLOUGHBY AVENUE |
BROOKLYN / KINGS | 3209 | 22 | DWELLING ONLY - 6 FAMILY | 1136 WILLOUGHBY AVENUE |
BROOKLYN / KINGS | 3243 | 62 | APARTMENT BUILDING | 69 STOCKHOLM STREET |
BROOKLYN / KINGS | 3245 | 21 | DWELLING ONLY - 6 FAMILY | 1358 DEKALB AVENUE |
BROOKLYN / KINGS | 3254 | 9 | APARTMENT BUILDING | 259 EVERGREEN AVENUE |
BROOKLYN / KINGS | 3269 | 13 | DWELLING ONLY - 6 FAMILY | 222 STANHOPE STREET |
BROOKLYN / KINGS | 3276 | 44 | DWELLING ONLY - 6 FAMILY | 167 HARMAN STREET |
BROOKLYN / KINGS | 3286 | 19 | DWELLING ONLY - 6 FAMILY | 166 HARMAN STREET |
BROOKLYN / KINGS | 3289 | 39 | DWELLING ONLY - 6 FAMILY | 1361 GREENE AVENUE |
BROOKLYN / KINGS | 3290 | 54 | DWELLING ONLY - 6 FAMILY | 1397 GREENE AVENUE |
BROOKLYN / KINGS | 3323 | 34 | DWELLING ONLY - 6 FAMILY | 150 GROVE STREET |
BROOKLYN / KINGS | 3326 | 6 | APARTMENT BUILDING | 527-531 KNICKERBOCKER AVENUE |
BROOKLYN / KINGS | 3378 | 21 | DWELLING ONLY - 6 FAMILY | 1418 PUTNAM AVENUE |
BROOKLYN / KINGS | 3378 | 22 | DWELLING ONLY - 6 FAMILY | 1420 PUTNAM AVENUE |
BROOKLYN / KINGS | 3397 | 54 | DWELLING ONLY - 3 FAMILY | 199 WEIRFIELD STREET |
QUEENS | 3448 | 1 | APARTMENT BUILDING | 3-37 ST NICHOLAS AVENUE |
SOURCE: Memorandum of Contract, ACRIS