Rainero family files $25M bankruptcy at historic Village building

80 West Washington Place (Credit - Google)

William Rainero as managing member of the entity that owns the historic townhouse at 80 West Washington Place in Greenwich Village, Manhattan, filed a $25 million bankruptcy petition to halt a foreclosure auction scheduled for August 23, 2023, the day after the filing. The owner entity is 80 West Washington Place Real Estate Holdings LLC. The building was home to composer John Philip Sousa.

The property with one residential unit has 6,075 square feet of built space and 1,310 square feet of additional air rights for a total buildable of 7,392 square feet according to a PincusCo analysis of city data. The parcel has frontage of 22 feet and is 96 feet deep with a total lot size of 2,149 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $15.5 million.

The brokerage Serhant is marketing the property with a $22.5 million list price.

Bloomberg reported on the bankruptcy filing yesterday.

Foreclosure case 850070/2021
Bankruptcy case 23-11347
William Rainero narrative pdf 80 West Washington Pl
Bankruptcy Chapter 11 LINK

William Rainero states the property is worth $25 million based on a 2019 appraisal. The townhouse has $22.5 million in secured claims and $2.7 million in unsecured claims.
The Rainero family is already involved in two other Southern District bankruptcy petitions, for $30.5 million 23-10068 at 354 Sixth Avenue and for $5 million 22-11670 over 307-309 Sixth Avenue.

In the 80 West Washington Place foreclosure case, Emigrant Bank has a claim of $18.58 million and a subordinate lender, the Galinn Fund, has a claim for $4 million.

The co-debtors in the bankruptcy filing are Denise Rainero, Georgette Doyle, Joseph Rainero, Michael Rainero, Yvonne Rainero.

According to William Rainero’s affidavit, “The Debtor was formed October 19, 2012, for the purpose of owning property at 80 West Washington Place… and operating it as an event space that offers catered and uncatered parties and events. The Property is also known as the Sousa House due to its former connections with John Philip Sousa. Debtor entered into a loan with Emigrant Bank on March 21, 2019, whereunder the approximate amount of $13,000,000 was borrowed (the “Loan”). 5. The adjustable rate note bears interest at 6.250 percent and is payable interest only at the rate of approximately $68,000 per month. 6. A lawsuit was commenced by Emigrant on March 31, 2021, for non-payment. 7. A payoff and reinstatement letter dated February 16, 2023, states that the payoff amount is $18,577,195.10 and the reinstatement amount is $5,615,701.45. 8. The Galinn Fund LLC (“Galinn or the “Second Secured Lender”) holds a second mortgage on the Property and began an action against the Debtor on March 2, 2021, which was amended on March 4, 2021, in the amount of approximately $3,000,000. Emigrant Bank has noticed a foreclosure sale for August 23, 2023, at 2:15 p.m. at 60 Centre Street, NY, NY.”

Direct link to the property’s ACRIS page.

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