Sunday, March 13, 2011

Bush Terminal: Trouble for Abraham Fruchthandler i.e., Yeshiva Chaim Berlin

Hat tip to RaP
Real Estate

A $300 million loan on the Bush Terminal in Brooklyn, NY has been transferred to a special servicer due to monetary default, according to Fitch.

According to the documents related to the loan, it is secured by a first mortgage encumbering Bush Terminal, which is located on various blocks between 32nd and 41st Streets and 1st through 3rd Avenues in Brooklyn. The Bush Terminal Property consists of 16 multi-story office, loft and industrial buildings containing a total of 6.15 million sf of gross building area. The buildings were constructed at various times starting in 1904 on approximately 35 acres of land. The Bush Terminal Property was 85 percent occupied by tenants such as the NYC DCAS HRA (2.9% of NRSF), Virginia Dare Extract Co. Inc. (2.6%) and NYC Department of Finance (2.5%) when the loan was secured.

The borrowers are 1-10 Industry Associates LLC and 19-20 Industry City Associates, LLC, each a single-purpose, single-asset entity. The sponsors of the borrowers are Rubin Schron and Abraham Fruchthandler. At the time the loan was distributed, Rubin Schron had approximately $1.5 billion of equity in more than 40 residential, retail, commercial and healthcare assets primarily located throughout the New York metropolitan area, including over 15 million sf of industrial space.

Wall Street Journal

The Schron group is hopeful it will be able to restructure the debt and hold onto the property, according to people familiar with the property.

Mr. Schron's group, which today includes Abraham Fruchthandler, anticipated when the initial loan was made that the property could generate an annual net operating income of about $37.9 million as they released space at higher rents, according to Realpoint. Instead the property's net operating income for the six months ended in June 2010 was about $5.8 million. During that same time period, debt service was about $9.6 million, according to Realpoint.

The property's history can be traced back to the early 1900s when industrialist Irving T. Bush began building on the land his family owned. It was billed by some accounts as a city within a city with a railroad, trolleys and as many as 35,000 workers.

Mr. Schron's group is in default on the $300 million in debt, according to Realpoint, a credit-rating firm and a unit of Morningstar. The debt was reported 30 days delinquent earlier this month by the special servicer charged with managing the loan, according to Realpoint.


  1. I don't see how this is related to Yeshiva Chaim Berlin. Every personal business matter of Fruchthandler is not a Yeshiva matter.

    It's apparent to me that you don't like Chaim Berlin or its Rosh Yeshiva.

  2. Daniel Eidensohn,are you trying to imitate and compete with that criminaly insane antisemitic cesspool of a blog called FAILLED MESSIAH ? it sure looks it'please please cut it out 'ES PASHT NISHT FAR DIR'

  3. Doesn't it also effect mir,as well?what's the whole point of this?

  4. the property has been mismanaged for many many years.

    i was a tenant there years ago, and had loads of problems from management.

    never had such an incompetent property manager. (it is self managed.)

  5. I have no trouble seeing the relevance. In a world where money drives decisions rather than other considerations, a shift in the financial fortunes of a key actor can mean a shift in all sorts of other things ranging from Fruchthandler's own influence at CB to CB's influence in the larger world, to CB's hold on its cult members.

    This is relevant news.

  6. These are highly unethical people who take advantage of their contractors - not paying bills and grossly mismanaging projects, while completely mismanaging the property itself and the tenants who are supposed to be their customers. Just because one of the partners contributes to a Yeshiva does not excuse them from ethcial business practices. Trying to stifle criticisim because someone is affiliated with a particular community and wealthy is morally wrong and leads to a furthering of unethical behavior within that community - when what is needed is that these people be held accountable for their lack of ethics across the spectrum of their activities. This is the only way Tikkun Olam can occur .


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