Flushing Developer Files Bankruptcy – The Real Deal

0

A real estate portfolio that spans Flushing, Manhattan and Long Island has been pulled from the auction as its owner files for bankruptcy.

Rinse Developer and supermarket owner Jeffrey Wu on Wednesday filed for bankruptcy three LLCs holding mezzanine debt on his properties. The loans, which total $15.3 million, had been put up for sale at an auction that was due to close at 10 a.m. Wednesday. The auction has been postponed.

Wu, who also goes by the name Myint J. Kyaw, also filed for personal bankruptcy in court for the Eastern District of New York.

Wu did not immediately respond to a request for comment.

Properties covered by its mezzanine loans include 41-60 Main Street in downtown Flushing – a 100,000 square foot office and retail building – and 50 remaining units in the 99-unit condominium development at 133-38 Sanford Ave.

The pledged interests also include a 28,000 square foot commercial condo in Chinatown at 80 Elizabeth Street that is leased to Hong Kong Supermarket – a chain of grocery stores that Wu helped found. The final piece in the portfolio is a 184,000 square foot industrial complex in Deer Park at 377 Carlls Path.

Wu’s personal bankruptcy filing lists assets under $50,000 and liabilities between $50 million and $100 million.

It’s unclear what caused the loan distress, and the issues predate the coronavirus. Wu’s lenders filed their notice of creditors’ interests in his properties in January 2018.

It was then that Wu received a Financial package of $109 million — a $94 million first mortgage and $15 million mezzanine loan — for Eli Tabak’s Bluestone Group 41-60 Main Street. Wu’s personal bankruptcy filing lists Bluestone as a creditor with a $7 million claim.

Contact Rich Bockmann at [email protected] or 908-415-5229.

Correction: A previous version of this article incorrectly identified the property’s address as Sanford Avenue.

Share.

About Author

Comments are closed.