Bed-Stuy owner files $25M bankruptcy, faults ground tenant

Esther Green aka Esther Green-Blumenfeld, as manager for 1325 Atlantic Realty LLC who along with Steven Green own the two tax parcels at 1325-1339 Atlantic Avenue, in Bedford-Stuyvesant, Brooklyn, filed for bankruptcy protection claiming assets of $25 million and liabilities of $4.6 million.

The owner entity is the landlord through a 49-year ground lease with the tenant Lazar Waldman, through the entity Brooklyn Hospitality Group LLC. Green sued Waldman in State Supreme Court in September 2021, alleging non-payment of rent, taxes and allowing liens to pile up.

According to the bankruptcy filing, “As described in more detail below, among other things, the Tenant [Waldman entity] failed to pay the base rent subsequent to February 1, 2021; failed to complete agreed upon construction on the Property designed to convert the Property into a hotel; failed to pay, at least, 18 contractors working on the construction project which led to multiple mechanic’s liens being placed on the Property totaling approximately $3,476,604.13; stopped paying rent; stopped paying real estate taxes; left the Debtor scrambling to ensure proper insurance coverage was established on the Property; and has refused to vacate the Property. All of this has left the Debtor pursuing and defending multiple litigations and scrambling to ensure it maintains possession of the Property.”

Direct link to Acris document. link

[google_map_for_business addresses=’96-16 Queens Boulevard, Queens, NY’]