Chetrit’s Hotel Bossert with $177M judgment set for auction in one week

The referee managing the foreclosure sale of Chetrit Group’s Hotel Bossert, located at 98 Montague Street in Brooklyn Heights, scheduled the auction in one week, on February 13, 2025, to sell the hotel with a judgment of $177 million. The auction was disclosed in a notice of sale published yesterday in State Supreme Court in Brooklyn.

Notice of sale LINK

Case 510815/2022 LINK

Beach Point Capital Management holds the debt on the building, and is a likely winner of the auction through a credit bid.

The PincusCo database currently indicates that Chetrit Group owned at least 39 commercial properties with 4,881,164 square feet, 2,287 residential units and a city-determined market value of $928.3 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 47 percent of the 4,881,164 square feet of built space are elevator properties, with office properties next occupying 26 percent of the space. The bulk, or 71 percent of the built space, is in Manhattan, with Queens next at 25 percent of the space.

The judge, Lawrence Knipel, signed the judgment of foreclosure and sale on November 15, which directed the referee, Helmut Bochurt, to set a sale date for the 384-unit hotel building.

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.

Direct link to the property’s ACRIS page.