$29.5M bankruptcy filed at Aview Equities 100-key Downtown Brooklyn hotel

A bankruptcy specialist on behalf of Abraham Leifer‘s Aview Equities and others placed a 95-percent complete 100-room hotel project valued at $29.5 million at 291 Livingston Street in Downtown Brooklyn in bankruptcy as it faces a $34 million senior loan default and at least 19 mechanic’s liens totaling approximately $3 million. In addition, the development is subject to at least eight state court lawsuits including for a $3.5 million subordinate construction loan.

The petition was filed in U.S Bankruptcy Court in Manhattan. LINK The petitioner seeks to sell the property through a marketed sale process.

The project has long history. Elie Karp’s Hello Living bought the property in February 2017 for $11.1 million, but by June 2018,  Abraham Leifer’s Aview Equities was signing documents as the owner. There is no indication in the filings that Karp retains an interest in the property.

Aview submitted a new building construction project for a 100-unit, 39,040 square-foot hotel (R-1) building at 291 Livingston Street in Downtown Brooklyn, Brooklyn on May 15, 2017 under job number 321193230 and it was permitted on July 1, 2019. It calls for the construction of a 22-story building.

Abraham Leifer’s Aview Equities obtained a $29 million construction loan from Acres Capital in November 16, 2018. In June 2019, an entity affiliated with investor Avraham Cohen, along with his friends and family including his wife’s family in Asia, provided a $3.5 million subordinate construction loan. The Real Deal reported in March 2023 that this loan was in default and Cohen’s entity WU 291 Realty LLC, was suing for more than $5 million. 651438/2023 The article reported that Cohen is a co-founder of Cingulate Group, but that company was not a party to the loan.

According to the petition filed by the debtor’s chief restructuring officer, David Goldwasser of FIA Capital Partners, “The Property consists of a flag lot that is 20 feet wide on Livingston Street, 40 Feet wide at the rear on Grove Place, and 137.5 feet deep, with a 95% complete, approximately 46,000 square foot building located thereon… The Property is fully insured, secured, and maintained. Upon information and belief, the Debtor is current in the payment of all real estate taxes.

“Unfortunately, the Debtor ran out of working capital before the building and construction project was completed. The building is currently 95% complete but still requires approximately $6 million to complete… As a result of the cessation of construction activity and the Debtor’s inability to complete the project, the three loans made by Acres fell into default. Acres is currently owed approximately $34 million.

“In addition, there are approximately 19 junior mechanics’ liens filed against the Property totaling approximately $3 million… The Debtor believes the Property has a current fair market value of approximately $29,500,000.”

The bankruptcy petition states 291 Livingston Holdings, LLC and Perigrove 1001 LLC each own 50% of the debtor, which owns the development project.

According to sources, broker Greg Corbin has been hired to manage the sale of the property.

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