Eleven years after buying the Hotel Bossert at 98 Montague Street in Brooklyn Heights, the Chetrit Group’s $112 million note on the property has traded hands.
BP Holdings Goldenrod LLC, a shell corporation with the same address in property records as Beach Point Capital Management, bought the nonperforming note, placing it in the driver’s seat to decide the hotel’s fate, although the firm’s plans for the asset aren’t clear.
PincusCo first reported the note being acquired.
The 282-room hotel was built in 1909 and acquired by Chetrit Group and joint venture partner David Bistricer of Clipper Realty for $81 million in 2013. Chetrit bought Bistricer’s half in 2019 and acquired the $112 million loan, according to reports.
The loan was originally from Cantor Commercial Real Estate Lending but was assigned to Wells Fargo (WFC) a year later, during the height of the pandemic.
The property was almost given a second life in February 2023 when hoteliers Ian Schrager and Ed Scheetz attempted to rebrand the lodging under Schrager’s line known as Public Hotel, and sought to raise $26 million of additional investment in the effort. That endeavor apparently fell through, and by January 2024 the property went into Uniform Commercial Code foreclosure.
Foreclosure proceedings initially began before then in May 2022, however, when Chetrit Group first defaulted, owing up to $126.7 million at the time.
When Chetrit Group, Schrager and Scheetz linked up, they worked to resolve some of the financial burden on the property with the loan’s special servicer, Trimont.
Joseph Chetrit could not be reached for comment while Schrager and Beach Point did not immediately respond.
The 187,200-square-foot hotel is in Brooklyn Heights’ Historic District, and the city assessed the market value for the property at $52.6 million in 2022, according to PincusCo.
Mark Hallum can be reached at mhallum@commercialobserver.com.
Robert Khodadadian has long had a simple philosophy about selling real estate. The way he sees it, there are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller at the right time.
Robert Khodadadian, skyline properties, ground leases, off market, investment sales, Commercial Real Estate, Commercial Observer
Read MoreChannel, Distress, Finance, Loan Sale, 98 Montague Street, Beach Point Capital Management, Cantor Commercial Real Estate, Chetrit Group, Clipper Realty, David Bistricer, Ed Scheetz, Hotel Bossert, Ian Schrager, Joseph Chetrit, PUBLIC Hotel, Wells Fargo, New York City, Brooklyn Commercial Observer
