The setbacks hold coming for Serabjit Singh Malhotra.
The embattled Brooklyn developer is dealing with vital stress at 594 Dean Avenue in Prospect Heights, Crain’s reported, after allegedly defaulting on the $13 million mortgage tied to the constructing. The default was disclosed by Morningstar Credit score Analytics.
The rationale for the default and switch to particular servicing wasn’t clear. Occupancy isn’t a difficulty on the property, which has been absolutely leased to the U.S. Postal Service for years.
Malhotra bought the property in 2015 for $13.5 million, a part of a string of acquisitions within the borough that seem like coming again to chunk him.
The developer couldn’t be reached for remark by the publication, both individually or by way of his firm, Administration Group of Brooklyn. His legal professional additionally didn’t return a request for remark.
It’s the newest signal of bother for Malhotra.
In Might 2024, Malhotra filed bankruptcy papers for 257 Washington Avenue, previously St. Luke’s Evangelical Lutheran Church, 4 months after the property went into foreclosures. He was the second developer to personal the property and to aim to transform it into housing within the 10 years for the reason that church was shuttered. He bought it from Brookland Capital for $13.5 million in 2019, when Brookland was dealing with monetary difficulties and unloading properties.
In February 2025, Michael Lévy’s Geneva Transatlantic Holdings and Andrew Bradfield’s Orange Administration purchased the constructing out of chapter for $9 million. They plan to transform it into both flats or condos.
Lately, Malhotra has bought buildings, akin to 232 Adelphi Avenue, and misplaced others to foreclosures, akin to 115 Underhill Avenue and 25 Lexington Avenue, as he tries to flee misery. An affidavit pinned issues throughout the portfolio on issue acquiring financing since 2019 — forcing Malhotra to ask his spouse for assist — in addition to pandemic-hindered building.
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