Toby Moskovits’ Bushwick Hotel development faces foreclosure – Business Watcher

Fortress representatives did not immediately respond to a request for comment. Moskovits declined to comment.

Fortress claims that Moskovits and 232 Seigel Acquisition LLC defaulted on the construction loan in 2019 after failing to complete construction of the 10-story, 97,245-square-foot hotel on the vacant lot between Bushwick Avenue and White Street, according to court records.

As part of the dismissal of the bankruptcy case, a judge ruled that Heritage Equity would pay off the $ 3 million mezzanine loan and allow Fortress to proceed with foreclosure proceedings, saying that Heritage Equity now owed $ 8.2 million for the default, including late fees and interest, according to court documents.

Heritage Equity, led by Moskovits and its business partner Michael lichtenstein, bought the lot at 232 Seigel Street with 15 other sites nearby for $ 28.5 million in 2015, The real deal reported. He filed plans later that year to build a hotel, designed by Morali Architects, with a gym and a restaurant.

In November 2019, Moskovits sued his original lender, Capital City Bridge, to stop the notices of default and acceleration on the $ 5.25 million loan. Fortress bought the debt in January 2020 and Moskovits filed his case, accusing Fortress of “predatory tactics” and only buying the loans to try to take over the project, TRD reported.

Moskovits then withdrew the lawsuit in July, a source told Commercial Observer.

The development of the Bushwick Hotel is not the only struggling asset for Heritage Equity in recent months. Moskovits is facing a multitude of lawsuits and foreclosures for various projects around Brooklyn, including the fitting out of the offices 215 Moore Street, according to TRD.

And, in February, Heritage Equity filed for bankruptcy on its flagship development, the 147 rooms The Williamsburg Hotel, nearly a year after defaulting on his $ 68 million loan.

Update: This story has been updated to show that the bankruptcy case has been dismissed.

Source link