Hyde Park developer files for bankruptcy to avoid foreclosure
A Hyde Park property development company that has $103 million in assets and just $14 million in liabilities has nonetheless filed for Chapter 11 bankruptcy.
Kenwood Commons LLC said it faces imminent foreclosure, according to a statement from director Jacob Frydman, but intends to revamp the project either by refinancing or selling properties.
Kenwood Commons is based in Frydman’s $45 million Hyde Park home, but the proposed development is on the 75-acre former campus of the Convent of the Sacred Heart in Albany.
Kenwood Commons bought the property for $18 million in 2017, according to media reports, and the following year proposed a $500 million project with condominiums, townhouses, hotels and an arts and culture center.
The project was stalled because it was plagued with delinquent taxes, money owed to contractors and loan debt, according to a timeline from the Albany Historical Foundation.
TBG Funding sued Kenwood Commons for foreclosure and owes $8.1 million, according to an opinion from the Albany County Supreme Court. Kenwood filed for Chapter 11 reorganization in U.S. Bankruptcy Court, Poughkeepsie, on March 28, two days before the foreclosure sale was to take place, thus staying the suit.
The bankruptcy filing also cites pending or threatened court orders for Marjam Supply Company and Securitas Security Services.
Last year, creditors of a Kenwood Commons subsidiary, Deluxe Building Solutions LLC, also managed by Frydman, filed a petition in bankruptcy court in Wilkes-Barre, Pa., for involuntary liquidation under Chapter 7. The case is pending.
Frydman describes himself as an investor in real estate projects on the East Coast. He has been involved in deals valued at more than $2 billion, according to his personal website. He is CEO of Frydco Capital Group, a private family office. He was a guest lecturer on real estate finance at Columbia University. He has spoken about commercial real estate trends on Bloomberg TV, CNBC and Fox News. And he’s been active with nonprofits in the Hudson Valley.
He recently put his house in Hyde Park up for sale. The 10-acre estate on Rockledge Lane waterfronts on the Hudson River features a sculpture garden, helicopter landing pad, saltwater pool, indoor swimming pool, staff apartment and guest house. hosts, as well as a garage for 9 to 18 cars and a car wash. The 14,800 square foot limestone and glass home was designed by architect Lee Ledbetter and built in 2009.
The asking price is $45 million, but Redfin.com estimates it to be worth $38.6 million.