$15M Clinton Hill bankruptcy

Serabjit Singh Malhotra filed a chapter 11 bankruptcy petition in U.S. Bankruptcy Court in Brooklyn to protect his project at 257 Washington Avenue in Clinton Hill, Brooklyn, from a foreclosure auction. In that foreclosure case, the Valley National Bank note was purchased by an anonymous buyer through the name 257 Wash Note LLC, in care of Wachtel Missry attorney Ralph Dweck. The property is subject to two lawsuits including an ongoing pre-foreclosure suit Valley National Bank filed against Malhotra in August 2022.

Case 8-24-71960-ast LINK
Chapter 11 257 Washington pdf

Serabjit Singh Malhotra bought the property from Brookland Capital for $13.5 million on July 31, 2019. The other lawsuit was a $31.8 million money judgment concerning a judgment filed on April 26, 2024, by A10 Capital against Malhotra.

The property in Clinton Hill has 29,250 square feet of built space and 2,719 square feet of additional air rights for a total buildable of 31,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 200 feet deep with a total lot size of 15,999 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Clinton Hill Historic District. The city-designated market value for the property in 2022 is $3.6 million.

Direct link to the property’s ACRIS page.