Nightmare darkens for largest Brooklyn condo project of 2019
A 15-unit development at 19 Hausman Street in Greenpoint, which topped The Real Deal’s list of the largest Brooklyn condo projects in 2019, filed for bankruptcy in April and is now being sued by its creditors.
Just three years ago, Rafi Manor’s firm, M Development, was a leading developer in Brooklyn with 12 active projects. Now, Manor is facing foreclosure actions on four Brooklyn properties he helped develop: 135 Bayard Street, 517 Brooklyn Avenue, 744 Lefferts Avenue and 52 Herbert Street.
Last year, lender Realya Investments sued Manor and an LLC tied to his firm for defaulting on acquisition loans at 54 Dupont Street in Greenpoint. Realya also sued Manor for allegedly breaching a loan agreement at 517 Brooklyn Avenue in Crown Heights.
Manor and the LLC, M1 Development, argued that they were only listed as guarantors on the loan, and were not parties to the loan agreement. The court disagreed, ordering Manor and M1 to pay the loan agreement, including principal and interest, which amounted to about $1.6 million plus interest at a rate of $512.33 per day.
More on: therealdeal.com