Werner Reneges on $346M Deal to Buy All Year Portfolio
By Chava Gourarie May 6, 2020 10:12 am
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David Werner is attempting to pull out of a $346 million deal to buy a massive Brooklyn portfolio from Yoel Goldman’s All Year Management.
In early March, David Werner Real Estate Investments entered into a contract to acquire the 74-building multifamily and retail portfolio, with plans to close on May 5. The buyer is now reneging on the deal, claiming that All Year violated the terms — All Year reported to the Tel Aviv Stock Exchange — a claim the company rejects.
Werner is also requesting the return of his $15 million deposit, claiming that All Year didn’t provide sufficient information about the properties and entered into negotiations with tenants over leases without the buyer’s consent.
All Year denies these claims and refused to extend the closing date, per their report, which would constitute a default if Werner failed to close the deal. However, the two are now negotiating how to move forward, the TASE filing said.
The portfolio consists of 74 buildings throughout Brooklyn, with 611 residential units and 18 retail stores, and a net operating income of $59 million. Properties include 607 Franklin Avenue, 65 Kent Avenue and 1323 Bedford Avenue, across neighborhoods including Williamsburg, Bedford-Stuyvesant, and Crown Heights.
All Year also signed a non-binding deal for a $675 million CMBS refinancing for its massive Denizen apartment complex in Bushwick in February that was supposed to close in March, but the closing has reportedly been delayed.
All Year officials did not immediately respond to request for comment.
