Investors Sue Developers Over Williamsburg Property on Block Expecting Whole Foods

Some investors are suing some developers for fraud concerning an unspecified address in Williamsburg, according to an item that appeared in publication Law360 and was picked up by The Real Deal.

We searched public records and found the LLC is connected to three addresses on one block, one of which, 195 Berry Street, above, is part of a complex along North 4th Street between Berry and Bedford where Whole Foods is supposed to be locating. That particular site has been stalled for years, although recently we noticed the roof had been removed.

The lawsuit by financial backers Cornwall Management and Russian investor Oleg Soloviev alleges that developer North 3rd Development, hedge fund Thor United, and Atlant Capital Holdings purposefully misled the investors to defraud them of $2.2 million by defaulting on their loan agreements, then arranging a short sale of the property to a company controlled by one of the developers. The suit asks for $3.6 million.

The entity North 3rd Development is connected with 195 Berry, 248 Bedford, and the townhouses at 129 North 3rd Street, according to PropertyShark. The Real Deal specifies that the property in question is a “$119 million residential project.” Anyone know more?

NYC Developers Bilked Investors in $119M Project, Suit Says [Law360]
Williamsburg developers Sued for Fraud in $119M Project [TRD]
Roof Gone at 193 Berry Street [Brownstoner]
Big Deals in ‘Burg [Brownstoner]