Filing to block imminent foreclosure of Cobble Hill project with $25.8M in debt
232 Smith Street (Credit - Google)
A real estate broker, an attorney and an accountant filed an involuntary bankruptcy which could halt the imminent foreclosure sale of 232 Smith Street in Cobble Hill, Brooklyn, a development site where Louis V. Greco Jr. sought to construct a 10,000-square-foot retail project. He filed plans in 2015 and obtained funding that was refinanced in 2017 with $12.075 million from North Hill Capital Management. North Hill filed to foreclose on the loan in September 2020.
The broker from EDH Realty is seeking $339,10 while the attorney is seeking $3,711 and the accountant seeking $7,500. The bankruptcy petition was filed yesterday in the Eastern District.
In the foreclosure case, the Brooklyn State Supreme Court judge ruled on August 31, 2022 that the parcel was to be sold. The date of the sale is illegible. The final judgment amount was set at $25.8 million.
The 232 Smith Street parcel, also known as 61 Douglass Street, has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $484,000.
The development building in Carroll Gardens has zero square feet of built space and 10,000 square feet of additional air rights for a total buildable of 10,000 square feet according to PincusCo analysis of city data.
According to city public data, the property has received one DOB violation, $6,530 in ECB penalties, and $7,130 in OATH penalties in the last year.
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $16.8 million commercial foreclosure concerning a loan filed on September 8, 2020, by North Hill Capital Management against Second Development Services.
On this tax block, PincusCo has identified the owners of one of the nine commercial properties representing zero square feet of the 30,334 square feet. The identified owner is Carlos Saavedra.