Faced with foreclosure, The Tillary Hotel in Downtown Brooklyn filed for bankruptcy last week. The 174-room boutique hotel and residential building, located at 85 Flatbush Ave., is owned by Isaac Hager’s Cornell Realty Management and partners, including Rubin Equities.
FIA Capital Partners principal David Goldwasser, a debt workout expert hired as ownership’s chief restructuring officer for the bankruptcy, said the hotel is staying open. A UCC foreclosure auction over the mezzanine debt on the hotel was halted because of the bankruptcy filing, Goldwasser said.
“The plan is to operate the hotel and increase occupancy, and work through the pandemic,” said Goldwasser. “The goal is to stabilize it … a Chapter 11 bankruptcy is meant to reorganize. It keeps the dream alive.”
Hager’s firm and its partners paid $95 million for the building, which also features 64 rental apartments, in September 2019. Madison Realty Capital provided a $76-million acquisition loan.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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