What was once called “the Waldorf Astoria of Brooklyn” will head to auction in a week.
There is a long history between Hotel Bossert and the Chetrit Group, which has struggled to reopen the hotel at 98 Montague St. That struggle may end soon, according to The Real Deal.
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A notice of sale has been filed, announcing an auction for Thursday. The debt has exceeded $177M, according to the document, first reported by PincusCo.
Beach Point Capital Management holds the debt on the 14-story building. The firm bought a $112M note against the property last year as it was initially headed for auction.
That bought the Chetrits some much-needed time, but that time is almost up.
In 2013, Chetrit, alongside Clipper Realty CEO David Bistricer, bought Hotel Bossert from the Jehovah’s Witnesses, who used the building as housing. The new owners planned to return the landmarked building to its former use, creating a 302-key hotel.
Later, Chetrit bought out Bistricer.
In 2019, the firm refinanced its previous $85M debt with $112M from Cantor Commercial Real Estate Lending. But Chetrit defaulted on that loan in 2021, with preforeclosure documents filed in April 2022.
Hoteliers Ian Schrager and Ed Scheetz expressed interest in the project, delaying the auction. When that partnership didn't materialize, an auction was scheduled for January 2024, according to TRD.
That’s when Chetrit’s current lender, Beach Point, stepped in.
Meanwhile, reopening dates have repeatedly been missed. TRD reported in May that the hotel could reopen in as little as six months, but no November opening occurred.
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