David and Michael Shabsels have broken camp and are now turning to selling off the remainder of their massive real estate portfolio.

In a matter of months, the brothers have gone from raising $195M on the Israeli bond market, supported by dozens of summer camps, to losing it all in bankruptcy. Now, they plan to offload approximately 50 other properties comprising more than 5.8M SF of commercial space and nearly 3,000 residential units, Bisnow has learned. 

The firm tapped A&G Real Estate Partners to oversee the sale of the properties, held by Damis Holdings, which span 22 states and a variety of asset types from office and industrial to multifamily and retail. The portfolio also features several resorts, including Rocking Horse Ranch, 1000 Acres Ranch and Splashdown Beach. 

Explore the map below to see which properties are being sold:

The sale comes as the Shabselses work through a mounting pile of litigation, including a Department of Justice lawsuit filed this week that alleges the brothers concealed the relationship between their various companies to improperly obtain $13M in pandemic-era Paycheck Protection Program loans.

The Shabselses have been accused of heavily leveraging their real estate portfolio while plundering the properties, according to an investigation by The Real Deal. Earlier this year, parent company Simad Holdings defaulted on about $214M in Israeli bonds after it was revealed that the Shabselses had transferred $34M to their other companies without approval and couldn’t recover the funds.

The Shabselses’ bankruptcy attorney didn’t respond to Bisnow’s request for comment.

In the Adirondack Mountains, Damis owns the 1000 Acres Ranch, an all-inclusive resort that features horseback riding and operates from May to November. In court, the Shabselses’ attorney said the owners were already in default on payments owed to a merchant cash advance and short-term funder on the property when it filed for bankruptcy. 

The lender allegedly swept the resort’s bank account, leaving it at a negative balance as of June 11, during peak season. The ranch needs more than $1M to operate every season, according to court records.

Damis is separate from Simad, which operated about 30 for-profit summer camps, catering mainly to Jewish families. That entity was also put into bankruptcy earlier this year, and the vast majority of its assets have already been auctioned off. 

The portfolio garnered a vast amount of interest, drawing bids from private equity firms, operators and parents of campers, TRD reported. In total, 22 sites sold at auction for $368M, 7% above appraised value. 

Camp Mohawk in White Plains, New York, went to FitzWalter Capital Partners for $120.8M, far exceeding Warner Bros. CEO David Zaslav’s stalking horse bid of $80M.

Four other camps — including the property that was the foundation for the Shabselses’ portfolio, Camp Chen-a-Wanda — were offloaded through private sales. Another three weren’t part of the auction due to ongoing litigation. 

In addition to Simad’s and Damis’ restructuring proceedings, the brothers have filed for personal bankruptcy.

A&G Head of Real Estate Sales Andrew Jacobs said in a statement that the firm plans to “price and market each [Damis property] on its own terms, rather than treating the portfolio as one uniform group.”