Investor Daryl Hagler Takes Over Ridgewood’s Embattled Resi Tower Development

Real estate investor and controversial health care mogul Daryl Hagler has signed on the dotted line to take over one of the most embattled developments in Ridgewood, Queens. 

The under-construction mixed-use tower at 3-50 St. Nicholas Avenue changed hands Tuesday for $75.8 million in cash, according to city records, with entities tied to troubled developer Arch Companies and Meir Babaev’s AB Capstone conveying the development to Hagler’s CDK 3-50 St. Nicholas.

Toronto-based investor Kevin Wiener, whose family office 35 Oak Holdings previously partnered with developers Arch and AB Capstone, signed for the seller entities. Spokespeople for Arch, Wiener and Capstone could not be immediately reached for comment.

The 252,850-square-foot structure, bounded by Ridgewood’s Palmetto Street, Myrtle Avenue and Nicholas Avenue, is slated to host 133 residential units, as well as a large retail component. A Burlington location quietly opened its doors there this month, Grimes Square reported, but the apartments remain unoccupied. The site secured a certificate of occupancy in August, according to Department of Buildings records.

The transaction on Tuesday left in place mortgages from Madison Realty Capital with outstanding amounts totaling $75 million, with Hagler’s CDK LLC assuming the debt obligations. Hagler also secured the 99-year ground lease for an accompanying parcel for $10.2 million, according to the filing. A spokesperson for Madison declined to comment.

Jeffrey Simpson and Jared Chassen’s Arch Companies purchased a stake in the project from Babaev’s Capstone in 2021, according to Crain’s New York Business. Brothers Kevin and Michael Wiener also joined the project as investors. 

The project, most recently dubbed the Ridgewood, was mired in community pushback from its earliest days. The April 2022 death of a construction worker at the site and subsequent legal battles brought the project to a standstill, according to New York YIMBY, and it hit the auction block more than once. 

Arch’s Chassen and the Wiener brothers took Simpson to court in 2023 over internal disputes, according to The Real Deal, and the developer was ultimately pushed out of Arch in a highly publicized legal battle.

Hagler is no stranger to distress, however. 

The health care mogul and vice chairman of El Al Israel Airlines maintains a real estate portfolio of industrial, residential, hospitality, commercial and health care properties across the Northeast and beyond, according to his website. He’s also faced legal action over his nursing home business, including allegations of fraud and poor conditions.

Two years ago, the investor purchased Sunset Park’s 497-unit megaproject at 6128 Eighth Avenue out of foreclosure, according to TRD. He was recently reported to be in talks to buy Camp Mesorah, an Orthodox Jewish summer camp in Guilford, N.Y, out of bankruptcy. 

Hagler and his attorney did not respond to requests for comment.

Emily Davis can be reached at edavis@commercialobserver.com.