All Year Sells Denizen Bushwick to Atlas Capital Group for $506M
All Year Holdings Limited will sell its Brooklyn residential complex, Denizen Bushwick, to Atlas Capital Group for $506 million in cash in a deal expected to close this year, All Year announced on Tuesday.
A subsidiary of Yoel Goldman’s All Year filed for bankruptcy in February in an attempt to delay foreclosure sale on the Denizen. After that Chapter 11 filing, Silverstein Properties made an offer for half of the two-building, 911-unit complex, and All Year also fielded offers from Meadow Partners and Madison Capital, but eventually landed on Atlas.
One of All Year’s lenders committed to providing approximately $7 million in debtor-in-possession financing to keep the luxury complex running smoothly, the company said in a statement. All Year did not respond to a request for comment about the identity of the lender.
“The planned sale to Atlas is a positive outcome for the Denizen, its tenants, and the local community,” All Year said in a statement. “Day-to-day operations at the Denizen are continuing as usual and residents can expect the same luxury living experience.”
The All Year subsidiary filed for bankruptcy after failing to negotiate with mezzanine lender Mack Real Estate Credit Strategies on a second extension of the date of the Uniform Commercial Code foreclosure sale in late February. In bankruptcy filings from the time, All Year stated it owed Mack Real Estate about $73.2 million from a full recourse February 2019 loan, in addition to $170 million in defaulted senior debt to JPMorgan Chase.
All Year claimed in the bankruptcy petition that pandemic-related restrictions hampered amenities at the Denizen, which was built in two phases at 54 Noll Street and 123 Melrose Street. The Denizen has a long list of amenities, including a public park, pet spa, brewery, cafe with coworking space, fitness centers, art gallery and game room.
All Year has around $1.6 billion in outstanding debt on its $2.4 billion book of business, Commercial Observer reported.
Celia Young can be reached at email@example.com.