$13M bankruptcy filed for 85-unit Flatbush rental

Daniel Reifer, on behalf of his entity Three Nickels LLC, filed a bankruptcy petition to block a foreclosure action against the 85-unit rental building at 555 Ocean Avenue in Flatbush, Brooklyn, with $13.3 million in debts as of last fall.

Reifer filed the bankruptcy action following two default notices sent by the lender, Ocean Lender LLC, which announced the end of a forbearance period, and sought the appointment of a referee. Ocean Lender initiated the foreclosure on a loan with an original principal of $11.25 million on July 7, 2022 in Brooklyn State Supreme Court, as PincusCo reported at the time.

The parties signed a forbearance agreement on October 11, 2022, which included a payment schedule. In February and again in April the lender sent a notice of default, with the April 3 letter stating the  entire loan was due on March 31 and had not been paid. On April 25, the lender submitted a proposed motion to appoint a receiver, which is now blocked along with any other motion, but the bankruptcy filing.

The bankruptcy reported assets and liabilities of less than $50,000 each, and between one and 49 creditors, but did not list any creditors or the assets and liabilities.

Bankruptcy LINK

Direct link to the property’s ACRIS page and link to DOB NOW portal.