DW Partners sells $25M debt at highly litigated Williamsburg project

An anonymous lender bought the $25 million note from DW Partners secured by Ezra Unger and Aron Lebovits’s building at 415 Marcy Avenue with an alternate address of 425 Marcy Avenue in Williamsburg, Brooklyn.

This property is subject to an ongoing bankruptcy case in the Eastern District, 1:23-bk-40118. It unclear if Cirrus Real Estate Partners is the note buyer. The entity shares an address and floor with Cirrus. Cirrus did not immediately respond to a request for comment.

Violations and lawsuits

The properties were involved in one lawsuit and one bankruptcy over the past two years. The suit was a $44 million money judgment concerning a contract filed on December 16, 2022, by Aron Lebovits against Ezra Unger and DW Partners. The bankruptcy was filed on January 16, 2023, by Aron Lebovits citing assets of $31 million. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project, which is a new building project for a 31-unit, 28,492 square-foot R-2 building submitted by Ezra Unger with plans filed November 9, 2015 and permitted December 22, 2015. On one of the tax lots, the most recent condominium plan was filed by 425 MARCY AVENUE LLC to create 24 residential units and 1 commercial units in a building at 415 Marcy Avenue in Williamsburg, Brooklyn, called 427 Marcy Avenue Condominiumthat has a $42.8 million sellout, according to an January 4, 2021 submission to the New York State Attorney General. The principal of the sponsor, 425 MARCY AVENUE LLC, was Ezra Unger.

The block

On the tax block of 415 Marcy Avenue, PincusCo has identified the owners of three of the seven commercial properties representing 131,413 square feet of the 146,833 square feet. The two identified owners are Heyme Bleier and Aron Lebovits.
On the tax block, there were three new building construction projects totaling 83,269 square feet. The largest is a 23-unit, 47,351 square-foot residential (R-2) building submitted by Zevi Chaskelson with plans filed November 20, 2015 and permitted December 22, 2015. The second largest is a 31-unit, 28,492 square-foot residential (R-2) building submitted by Ezra Unger with plans filed November 9, 2015 and permitted December 22, 2015.

The majority, or 89 percent of the 146,833 square feet of built space are elevator buildings, with industrial buildings next occupying 11 percent of the space.

Direct link to Acris document. link