Dornin Investment Group Purchases $78M Note for Windsor Terrace Development

Dornin Investment Group (DIG) has acquired the nonperforming senior loan secured by the in-development multifamily property at 57 Caton Avenue in the Windsor Terrace neighborhood of Brooklyn for $78 million.

The building at 57 Caton Avenue, which occupies 101,000 square feet, will be a 131-unit multifamily development upon completion.

An announcement from DIG, a private real estate investment firm founded in 2010 that specializes in distressed debt and value-add strategies, noted that “the transaction was structured and financed through a combination of debt and equity … from a private equity fund … arranged by Ripco on behalf of DIG.” 

Michael Winter at Ripco, supported by that firm’s Adam Hakim and James Murad, arranged the financing that capitalized the acquisition. 

“Ripco’s innovative capital solution allowed us to move decisively on a complex multifamily nonperforming loan that aligns perfectly with DIG’s investment strategy,” DIG founder and CEO Chris Dornin said in the announcement. “This acquisition reflects our continued momentum in the distressed credit space. With the right capital structure in place, we’re positioned to efficiently resolve the loan and unlock long-term value.”

DIG’s announcement noted that the company has “completed six high-quality nonperforming loan acquisitions in 2025, totaling approximately $293 million and nearly $800 million of NPLs in the past several years.”

Speaking to Commercial Observer, Winter noted that the circumstances were just right for the opportunistic buyer. 

“These guys are some of the best note buyers out there,” said Winter, referring to DIG. “They love the asset, they like the borrower, and construction is just about complete. They liked the basis they were getting, and they acquired it.”

That said, the road to completion for the project has been long and rocky.

A rezoning for the project was initially filed in March 2018 by a then-anonymous developer who sought to rezone the site from commercial to residential, according to New York Yimby. An existing commercial building was demolished for the project, which had different parameters at the time, and was initially scheduled to be completed by 2021.

A January 2022 article from the same site shared that Parkview Financial provided $66 million in construction financing to the developer, Aview Equities affiliate 57 Caton Place LLC, and noted the parameters for the project at nine stories and 131 units, with a range of studios to three-bedrooms (but with 112 of the units being either one- or two-bedrooms). It also noted that the project was being designed by Gene Kaufman Architects.

New York Yimby noted that the developers made use of the 421a tax abatement, and its July 2023 update revealed an alternate address for the property of 23 Ocean Parkway, with the completion date being extended to January 2024. 

By December 2023, however, the project’s fortunes had taken a turn. According to Crain’s New York Business, Parkview had filed suit against PV Caton Ocean, “a limited liability company controlled by Brooklyn-based developer Abraham Leifer and his real estate firm, Aview Equities … over three allegedly unpaid mortgages totaling $66 million” that were backed by the project. Parkview alleged that “the borrower has been in default on these loans since April,” according to Crain’s, and was petitioning the court to appoint a receiver. 

PV Caton Ocean had paid $7.2 million for the half-acre site at 57 Caton Avenue in May 2014, according to Crain’s.

But now, with DIG taking over as the new lender, Leifer’s Aview will retain ownership of the development, according to Winter, who also said that construction is expected to be completed in early 2026, with the project hopefully receiving its certificate of occupancy in February or March, at which point move-ins would begin soon after.

Winter also confirmed that the project will be “a Class A multifamily property with a high level of finish and a high level of amenities.

“It’s a great asset in a great location with a great new lender,” he added.

DIG and Aview Equities did not immediately respond to requests for comment.

Larry Getlen can be reached at lgetlen@commercialobserver.com.