$7M bankruptcy filed for 30-unit Mott Haven rental

The owners of a Mott Haven, Bronx, apartment building with 30 residential units and six commercial units filed for chapter 7 bankruptcy yesterday in New York bankruptcy court. This is the second filing for the principals, Alejandro Quito and Rosa Quito, who own the building.

The principals Alejandro & Rosa Quito of the debtor entity, Mel Service Inc., filed for chapter 7 personal bankruptcy in May 2021. This new action is also a chapter 7 filing, but covers just the real estate at 540 Concord Avenue.

A chapter 7 filing is made with the intent of selling the assets, while a chapter 11 filing often results in a restructuring of the debt allowing the owner to remain in place.

Rosewood Realty Group has scheduled an auction for December 21, 2021, to sell the entity level ownership in the company, according to The Real Deal.

In this new filing, the property is valued at $7 million and debts are valued at $3.9 million, with nearly all of that $3.887 million balance on a loan. City records shows the owners borrowed $3.5 million in 2019 from CV Holdings, and that debt was sold to 540 Concord Lender LLC in April 2021. The new lender borrowed from Millbrook Realty Capital to purchase the loan.

The property had revenue of $327,258 so far this year, and had revenue of $485,020 last year, according to the filing. Tenants were paying a wide range of rents including one for $162 per month and another for $400. In 2020 the building tenants association sued the owner entity in Bronx housing court under index number 17323/2020.

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