Chabad of Gramercy Park files for bankruptcy, claims $13.7M in property assets
121 West 19th Street (Credit - Cyclomedia)
The Chabad of Gramercy Park filed for chapter 11 protection in U.S. Bankruptcy Court in Brooklyn on Wednesday, stating assets valued at $13.7 million related to five Manhattan properties, and debts above $24 million, most of which is a loan M&T Bank originated in 2020 for $23 million, which the bank sold to Ellington Management Group last year. Rabbi Naftali Rotenstreich, as president of the Chabad, signed the petition.
File 1-25-40105-jmm LINK
Chabad of Gramercy Park Ch 11 pdf
The $23 million loan was secured by the Chabad’s interest in four commercial condominium units at 121 West 19th Street (Acris), 12 East 13th Street (Acris), 116 West 14th Street (Acris) and 105 East 16th Street (Acris).
The bankruptcy filing mentions five properties and their current values, 121 West 19th Street, $4 million; 12 East 13th Street, $2.5 million; 116 West 14th Street, $4 million, as well as 40 West 22nd Street, $770,000; and 107 East 22nd Street, $2.5 million; but does not mention 105 East 16th Street.
The Chabad is also in active litigation in Landlord & Tenant court over allegedly unpaid charges at 245 East 19th Street, 40 West 22nd Street and a commercial lease at 211 Thompson Street.
The Real Deal reported in August on a long-running dispute between Rotenstreich and Rabbi Shaya Lesches over Young Jewish Professionals, the successful networking group founded as as a part of the Chabad.