All Year Holdings plans $506M sale of The Denizen to Atlas Capital Group

All Year Holdings plans to sell its two-building, 900-unit residential complex, known as The Denizen, to Atlas Capital Group for $506 million plus the “assumption of certain liabilities,” according to a media release. The sale of the residential complex, which is located in Bushwick, Brooklyn, is expected to be completed by the end of the year.

The planned sale of the buildings that have the addresses 54 Noll Street and 123 Melrose Street, comes after months of financial stress at the properties, which opened for tenants in 2018 and 2019. And these sales are being effectuated through a bankruptcy petition. Late last year, the Commercial Observer reported that the property, which was already scheduled for a Uniform Commercial Code (UCC) foreclosure sale in February of 2021, was facing additional problems after JPMorgan Chase, the senior lender on the property, put the developer in default on its $170 million mortgage.

Then in February of 2021, Yoel Goldman filed a lawsuit seeking to block the UCC auction of the $65 million mezzanine loan position owned by Mack Real Estate secured by All Year Management’s development at 123 Melrose Street.

By the end of the month, the property was placed in bankruptcy protection.

In addition, several prominent firms to submit offers to purchase the bonds issued through the Tel Aviv Stock Exchange, secured by All Year’s assets including the Denizen. The companies included Silverstein Properties, a joint venture between RAK Group, Real Hospitality Group and Apollo Global Management, and Criterion Real Estate Capital and Downtown Capital Partners, among others.

An investment sales team led by Helen Hwang of Meridian Capital Group was the broker on the transaction, according to bankruptcy records.

–Atticus O’Brien-Pappalardo

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