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October 20, 2009
Two Boymelgreen firms threatened with bankruptcy
Problems mount for troubled developer Shaya Boymelgreen, who is alleged to be $200,000 behind in his rent at his Brooklyn headquarters, 752 Pacific St.
Crain's NY Business
by Theresa Agovino
More shenanigans at 752 Pacific Street.
A company claiming to be a tenant in Shaya Boymelgreen's American headquarters in Brooklyn filed to push two companies controlled by the embattled developer into Chapter 7 bankruptcy last week. The tenant's legal move was made to avoid being evicted along with Mr. Boymelgreen, whose firm was slated to be removed from 752 Pacific Ave. Tuesday.
The order for that eviction, in turn, came after Mr. Boymelgreen lost a legal battle with the landlord of the building, which stands within the footprint of the huge Atlantic Yards development. The landlord, Henry Weinstein, says Mr. Boymelgreen is about $200,000 behind in his rent but that he has no knowledge or record of the developer leasing space to subtenant.
Mr. Boymelgreen's tenant, 752 Pacific St. Corp., didn't want to be ousted so it filed the petition to stop the eviction process and open a dialogue with Mr. Weinstein. The two companies named in the suit once controlled the leases to 752 Pacific Ave. and a neighboring parking lot but lost them in a lawsuit with Mr. Weinstein.
...“Boymelgreen never gave us any indication of subtenants,” Mr. Weinstein said. “We just assume this is some kind of fraud.”
Mr. Weinstein added that he is talking with authorities about moving ahead with the eviction. On Oct. 8, the Brooklyn Sheriff's office slapped a five-day eviction notice on the building, which Mr. Boymelgreen began leasing in 1999.
Mr. Weinstein said he sued Mr. Boymelgreen in 2006 after learning the developer sold his 40-year lease on the building to Forest City Ratner without Mr. Weinstein's knowledge. Forest City needs to raze the building so it can construct its project on the rail yards, which is slated to include an arena and 16 residential towers.
In May, the New York state Court of Appeals ruled that Mr. Weinstein could evict Mr. Boymelgreen and that Forest City was given illegal assignment to Mr. Weinstein's properties. Mr. Weinstein said Mr. Boymelgreen hasn't paid rent since June.
Posted by eric at October 20, 2009 9:47 PM