Bed Stuy Masonic group seeks state approval for $4.3M dev site sale to Tomer Erlich

An all-woman Brooklyn Masonic Lodge is seeking New York State court approval to sell a vacant parcel at 441 Willoughby Avenue in Bedford Stuyvesant to developer Tomer Erlich for $4.3 million, but the sale has been delayed because the Attorney General has alleged the property is worth more, and the property has been the subject of a public dispute over the demolition of the 19th century Jacob Dangler mansion that formerly occupied the site.

The Masons have owned the property since at least 1954, according to city records. By May 2019, the lodge had taken on $1.525 million in debt, but fell behind in payments, and in December 2020, the lender filed a pre-foreclosure action, 524325/2020, which remains ongoing.

The nonprofit signed a contract in September 2021 with Tomer Erlich, who then assigned the contract to another entity he controls, 441 Willoughby LLC.

According to the petition to sell the property, the lodge is, “a fraternal organization recognized as exempt under Internal Revenue Code… is an all-female Masonic Lodge which has been engaged in a variety of activities for the benefit of its members and youth in the neighborhoods it serves. Among other things, the Corporation conducts a food pantry for the neighborhood on a bi-weekly basis.”

According to the petition, “Local and city politicians, have weighed in, including the Mayor, with his Office characterizing it as an “error” as the developer received a permit to demolish the building by the Department of Buildings, but, because of a “technological glitch”, the Landmarks Preservation Commission was not notified about the demolition permit in sufficient time to consider designating the mansion as historic. The pressure from the neighborhood and city politicians has resulted in the stalling of the approval of the sale by the New York State Attorney General’s Office (“AG”) for more than two years. The Petitioner initially submitted its application for approval to the AG in December 2021… Since the Buyer bought the Corporation’s Mortgage debt, the consideration to be received by the Corporation from the sale of the Property at closing is the difference between the fair market value of $4,3000,000 and $2,098,000…” The Attorney General estimates the property is worth $5.4 million, while the petitioners estimate it is worth $4.8 million. The AG objected to the sale at $4.3 million noting that the price was allegedly below market. “The Sale Agreement at $4.3 million with the Buyer, therefore, is more than fair and reasonable. While the more recent Cushman and Wakefield appraised valuation at $4.8 million is $500,000 more, when one factors in the forgone interest and demolition costs paid by the Buyer amounting to $ 1,572,689.06, the Sale Agreement at $4.3 million is more than fair and reasonable to the Corporation, which is in dire financial straits. 45. There is a pending foreclosure action and interest on the Mortgage Debt continues to accrue as each day passes. The Corporation also owes real estate taxes in the amount of $11,420.21.”

The property in Bedford Stuyvesant has a total buildable of 29,997 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $711,000.

Direct link to the property’s ACRIS page.