Six Brooklyn walkups with $13.7M debt placed in bankruptcy

Under pressure from Fannie Mae, property owner Zalmen Wagschal filed five petitions to place six Brooklyn walkup buildings with a total of $13.7 million in original debt into bankruptcy protection. The filings were submitted yesterday in the U.S. Bankruptcy Court Eastern District of New York in Brooklyn.

Wagschal refinanced the properties in 2018 through Greystone & Co. which assigned the debt to Fannie Mae, which filed a series of pre-foreclose actions in 2021. The six properties are each six-unit walkups with a total of 36 units.
All the properties are being managed by referees, according to a request for joint administration of the petitions under the filing for 634 Wilson Avenue.
The properties are 634 Wilson Avenue, 221 Himrod Street, 867 Knickerbocker Avenue, 871 Knickerbocker Avenue, 299 Throop Avenue and 1427 43rd Street.
Wagschal bought the properties between 2009 and 2013 for under $1 million each, and increased the debt significantly in 2014.

Bankruptcy LINK and FILING

Direct link to the property’s ACRIS page