Another ill-fated Eli Karp venture has found its way to bankruptcy court.
Investors behind the buzzy Brooklyn developer’s 44-unit condo at 2415 Albermarle Road are looking to get $15 million back. The group, identified through the entity NY Secured Funding LLC, filed an involuntary bankruptcy petition over the 13-story building on April 19 and seeks to auction off the property.
The two-year legal saga began with a foreclosure filing in 2021, when a $15 million mortgage from the LLC matured and Karp and a Hello Living affiliate Hello Albemarle failed to pay up, according to investors.
In October, condo owners documented rampant leaks inside the building, claiming in correspondence with Hello Albermarle that the developer abandoned the property and “no longer owned or managed the building,” according to emails submitted to court.
Karp and Hello Albermarle categorically denied the allegations, according to the lawsuit. Hello Albermarle still holds the deed to the property, according to ACRIS filings.
Karp and Hello Living did not return a request for comment.
Blocks away, a similar series of events played out at another Karp property just last year.
Amid a do-or-die campaign to maintain ownership of his prized 1580 Nostrand Avenue rental development, Karp and another Hello Living affiliate Hello Nostrand filed for bankruptcy.
It was a bid to buy time, just one day before the developer’s lender, Madison Realty Capital, was slated to hold a UCC foreclosure auction after Karp allegedly defaulted on another multimillion dollar loan.
Karp argued at the time that the lender had forced the loan into a forbearance plan, forcing him to take out more loans.
Months later, on the north side of the neighborhood, Karp lost control of another property, this time a 55-unit building at 271 Lenox Avenue, after he defaulted on a $34.5 million loan from Greystone.
Karp has previously blamed the antics of banks and lenders for his troubles.
In the case of 271 Lenox, Karp’s attorney claimed the default was invalid, as the developer suspended payments over bad faith conduct. In court filings, Karp described the defaults as “manufactured.”
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