Deal saves Queens co-op from bankruptcy

Real Estate Weekly, August 11, 2004

The Praedium Group LLC, and New York City-based Pinnacle Realty Company announced the recapitalization of the Anita Terrace co-op in Rego Park, Queens.

Under the Praedium/Pinnaele plan, equity ownership for existing co-op shareholders and the co-op structure itself will be preserved in exchange for refinancing the existing mortgage and paying other claims and expenses.

Praedium/Pinnacle will also acquire ownership in 238 sponsor units. The court appointed Chapter 11 Trustee, Zachary B. Kass, had originally obtained approval from the U.S. Bankruptcy Court for a 363 sale and liquidation of the property, which would have allowed the winning bidder to de-convert the coop structure and assume ownership of units formerly owned by the co-op shareholders.

These residents would have remained in their homes as tenants, but would no longer have owned them.

Built in 1952, the three building, 14 story complex located at 99-40 and 99-60 63rd Road and 99-05 63rd Drive, is comprised of 564 units totaling 808,920 s/f..

The Anita Terrace co-op board took over management of the property in 1999, eight years after the building was converted to co-op status by ViSutton Associates, and filed for bankruptcy in 2001.