Bankruptcy judge approves sale of William Vale Hotel

The William Vale is set to be sold for $177 million next month, closing the chapter on one of New York’s most acrimonious bankruptcy battles.

A bankruptcy judge recently approved the sale of the hotel to EOS Hospitality, who provided the stalking horse bid. The proceeds of the sale will repay the Israeli bondholders who provided the financing for the Williamsburg property.

The hotel, among the ritziest in Brooklyn, was the center of a messy dispute between the property’s developers Yoel Goldman and Zelig Weiss.

Things got messier when Goldman’s company, All Year Holdings, filed for bankruptcy in 2021. Restructuring officers took over and put the hotel’s controlling entity into bankruptcy in 2022. All Year was locked in a tense battle with Weiss, who tried on multiple occasions to wrest control of the hotel. Last year, Weiss, who was operating the hotel, announced he planned to end his fight last year and vacate his lease.

The judge’s ruling will effectively end the drama between All Year and Weiss. EOS will take control of the property and bring its own management company.

U.S. bankruptcy Judge Martin Glenn approved All Year’s settlement agreement with Zelig Weiss. As part of the settlement, All Year agreed to drop an adversary complaint against Weiss, which potentially left him on the hook for damages. Goldman and Weiss, however, will have to pay $8.5 million to the All Year wind-down company. All Year’s wind-down company further agreed to purchase the internet domain for the William Vale hotel from Goldman and Weiss for $1.3 million.

Herrick’s Stephen Selbst, Avery Mehlman, Janice Goldberg represented the All Year wind-down company in the bankruptcy. The company hired Eastdil Secured as its broker.

The bankruptcy judge also shot down an objection brought by Goldman, who claimed Weiss did not have the rights to enter into an agreement with All Year. But the judge denied Goldman’s objections.

All Year was one of Brooklyn’s largest development firms. Since restructuring officers have taken over, most of All Year’s assets have been sold off, with the notable exception of the William Vale.

This article was updated to note the seller’s broker.