Friday, December 29, 2023
DW Partners bails out of embattled project in Hasidic Williamsburg
After a bizarre bankruptcy delayed a South Williamsburg condo project designed for Hasidic families, its lender is getting out.
DW Partners sold its $25 million loan on the luxury development at 415 Marcy Avenue. An entity connected to Cirrus Real Estate, led by former Fortress global head of real estate Anthony Tufariello, bought the loan, according to property records. PincusCo first reported the news.
The 25-unit condo project, which dates back to at least 2015, hit a snag in 2021 when DW initiated a foreclosure, alleging developer Ezra Unger defaulted on the loan.
Complicating matters, the previous property holder, local bakery owner Aron Lebovits, claimed he was the true owner and sued Unger, alleging that he took advantage of "simple people without any real education." That stalled the foreclosure.
But Lebovits couldn't post a $1.5 million bond demanded by a judge and the foreclosure resumed. Lebovits tried to file another lawsuit, but the judge dismissed it.
In January, a day before the foreclosure sale was set to occur, an unexpected bankruptcy petition stopped the proceedings. It was not by the developer, Unger, but by Lebovits.
In his filing, Lebovits claimed that Unger "systematically looted Lebovits' property using a series of fraudulent and forged documents." He also alleged the loan from DW was fraudulent.
In another unusual move, Lebovits provided granular details about who paid the legal costs for the bankruptcy filing. Various relatives of Lebovits' chipped in a few thousand dollars apiece, nearby Congregation Beis Nusen provided $5,000 and Regal Management Services contributed $15,000.
Unger did not seem to appreciate the reprieve from foreclosure. Through his attorney, he argued that Lebovits had no right to file for bankruptcy because he was not the debtor. Unger also denied Lebovits' allegations of fraud, claiming Lebovits had already been paid millions of dollars over the years.
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