Brooklyn Real Estate Empire Strained With Rental Bankruptcy
(Bloomberg) -- Cracks are starting to form in the All Year Management real estate empire after part of its apartment development in a hipster Brooklyn neighborhood filed for bankruptcy.
Evergreen Gardens Mezz LLC, controlled by All Year, sought Chapter 11 protection Monday in the Southern District of New York, according to a petition, listing assets and liabilities of $50 million to $100 million. The debtor is part of the 900-unit Denizen apartment complex, a millennial haven in Bushwick, Brooklyn, developed on the former site of the Rheingold Brewery.
A Chapter 11 filing typically allows a company to keep operating while it works out a recovery plan. Messages left with All Year seeking comment weren’t immediately returned.
Evergreen Gardens was part of the New York City affordable housing lottery, offering 183 units, with a 1-bedroom priced at just over $1,000 per month. Amenities at the award-winning complex include a beer and wine brewery, co-working space, rock climbing and a swimming pool, according to the website.
The bankruptcy follows a tough 2020 for All Year Management, which saw the pandemic unravel efforts to manage its web of debt that started running into trouble in 2018, according to the Commercial Observer. Bankruptcy lawyers from Weil Gotshal & Manges are handling the filing, court documents show.
All Year, founded by Yoel Goldman and currently run by chief restructuring officer Joel Biran, was started in 2007 and has grown to own more than 150 buildings in gentrifying parts of Brooklyn, according to the Observer and Who Owns What, a website that aggregates New York real estate data.
The case is Evergreen Gardens Mezz LLC, 21-10335, U.S. Bankruptcy Court (Manhattan).
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