Beach Point closing in on Chetrit’s Hotel Bossert that has $177M judgment

Beach Point Capital Management on Friday moved a step closer to acquiring title to Chetrit Group’s Hotel Bossert, located at 98 Montague Street in Brooklyn Heights, when a State Supreme Court judge handed down a judgment of foreclosure and sale that allows the court appointed referee to set an auction date for the property, that has a $177 million judgment lien.

The judge, Lawrence Knipel, signed the order on November 15, which directs the referee, Helmut Bochurt, to set a sale date for the 384-unit hotel building. No sale date has been set as of publication.

Case 510815/2022 LINK

On April 25, 2024, Beach Point Capital Management, through the entity BP Holdings Goldenrod LLC, bought the note with an original principal of $112 million from a securitized entity called Series 2019-BOSS, with the special servicer Trimont LLC, secured by the building. Chetrit Group owns the property through the entity 98 Montague LLC.

Commercial Real Estate Direct reported in July 2024 that Beach Point bought the note for $90 million, or 80 percent of the original amount.

The hotel, opened in 1909, has 187,200 square feet of built space according to a PincusCo analysis of city data.
Chetrit Group along with David Bistricer bought the property on November 2, 2012, for $81 million, but in 2019, Chetrit Group bought out Bistricer, and obtained this $112 million loan. Trimont LLC was the special servicer for the securitized lender which filed a pre-foreclosure in 2022, 510815/2022.

The property

The hotel building in Brooklyn Heights has 187,200 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 78 feet and is 200 feet deep with a total lot size of 15,600 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Brooklyn Heights Historic District. The city-designated market value for the property in 2022 is $50.9 million.

Prior sales and revenue

This property was sold for $81 million on November 2, 2012.

Development

For the tax lot building, it received an initial renovation certificate of occupancy on April 27, 2018.

Violations and lawsuits

According to city public data, the property has received six DOB violations, $14,000 in ECB penalties, 11 housing violations, $15,650 in OATH penalties, and three housing litigations in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Brooklyn Heights, The bulk, or 26 percent of the 12.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 23 percent of the space. In sales, Brooklyn Heights has near average sales volume among other neighborhoods with $759.8 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Brooklyn Heights has near average amount of major developments among other neighborhoods and is the 13th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 20 commercial properties representing 250,801 square feet of the 291,771 square feet. The largest owner is Abraham Gerges, followed by Arkar and then Chetrit Group. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Chetrit Group owned at least 38 commercial properties with 2,287 residential units in New York City with 4,663,881 square feet and a city-determined market value of $877.7 million. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Starwood Mortgage Capital, Bank of Montreal, and G4 Capital Partners respectively. Within the portfolio, the bulk, or 49 percent of the 4,663,881 square feet of built space are elevator properties, with office properties next occupying 27 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Queens next at 26 percent of the space.

The owners according to the Department of Housing Preservation and Development includes Jacob Bistricer, head officer and Db Bossert Llc, shareholder. The business entity is DB Bossert Llc.

The surrounding

Within a 400-foot radius of 229 Hicks Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. Of those four items, two were sales above $5 million totaling $15.2 million. The most recent of the two was Vadem Brodsky which bought the 8,330-square-foot, three-unit mixed-use building (S2) on 35 Remsen Street for $7.7 million from Eugenia E. Fasano on November 27, 2023. Of those four items, two were loans above $5 million totaling $15.6 million. The most recent of the two was Vadem Brodsky in which borrowed $8.5 million from S3 Capital secured by the 8,330-square-foot, three-unit mixed-use building (S2) on 35 Remsen Street on November 27, 2023.

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