The highly coveted William Vale hotel is about to hit the market.
Brooklyn developer Zelig Weiss vacated his lease at the hotel complex on Tuesday. Weiss operated the hotel through a lease with developer Yoel Goldman’s former company, All Year Holdings.
Attorneys for an All Year entity are now seeking to sell the hotel to pay back its creditors, including Israeli bondholders who hold the debt. The attorneys are seeking to appoint Eastdil Secured and A&G Real Estate Partners as the brokers. Eastdil and A&G were also used to market the nearby Williamsburg Hotel.
Weiss did not respond to a request for comment. Eastdil and A&G also did not respond to a request for comment.
Recent filings in bankruptcy court reveal how much the brokers could take home if they can close the deal.
The fee would be 0.75 percent for a sales price of up to $160 million, plus an additional two percent for anything above $160 million, three percent above $170 million and four percent beyond $180. The fees could be reduced if Weiss, Electra Real Estate or Blackstone enters into an agreement to acquire the property, according to court filings.
Weiss, Goldman and All Year have been engulfed in a years-long legal battle over the control of the hotel. In late September, Weiss suddenly decided he wanted out of his lease and would hand over management responsibilities to All Year.
Weiss still has an ownership stake in the property. Proceeds from the sale could go to Weiss after the creditors are paid.
Once the property goes up for sale, Weiss also has the option to bid. This time, he can acquire the hotel without Goldman, his former partner turned enemy.
The partnership between the two former heavyweights in Brooklyn real estate started to unravel around 2016 after Goldman alleged Weiss attempted to push him out of some of their investments. The two also went at it over the William Vale with Goldman alleging that Weiss failed to hand over the hotel’s finances.
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Goldman’s empire ran into financial issues around 2020. Lenders initiated foreclosures and restructuring officers eventually took over and put it into bankruptcy. This year, All Year sold off most of its portfolio to healthcare investor Avi Philipson. The William Vale was excluded from the sale.
During the bankruptcy process, Weiss attempted to acquire the hotel multiple times, including in recent months. All Year also sued Weiss, alleging he diverted hotel revenues, which should have been used to pay rent under the lease. That litigation is still pending in federal court.
Weiss and Goldman are also still entangled in litigation in state court, but the dispute moved to arbitration.