Real estate investor and controversial healthcare magnate Daryl Hagler has contractually sealed the acquisition of one of the most contentious property developments in Ridgewood, Queens. The mixed-use tower under construction at 3-50 St. Nicholas Avenue changed hands for USD 75.8 million in cash on Tuesday, according to city records. Companies affiliated with the previous developer Arch Companies and Meir Babaev's AB Capstone transferred the development to Hagler's CDK 3-50 St. Nicholas.
Toronto-based investor Kevin Wiener, whose family office 35 Oak Holdings previously collaborated with developers Arch and AB Capstone, signed on behalf of the selling entities. Spokespersons for Arch, Wiener, and Capstone were not immediately available for comment.
Details of the Property and Financing
The 252,850-square-foot building, bounded by Palmetto Street, Myrtle Avenue, and St. Nicholas Avenue in Ridgewood, is set to comprise 133 residential units and a large retail area. A Burlington store quietly opened its doors there this month, while the residential units remain unoccupied. According to Department of Buildings records, the site received a certificate of occupancy in August.
Tuesday's transaction left Madison Realty Capital mortgages with outstanding amounts totalling USD 75 million in place, with Hagler's CDK LLC assuming the debt obligations. Hagler also secured the 99-year ground lease for an associated parcel for USD 10.2 million, as per the filing. A spokesperson for Madison did not respond to a request for comment.
Project Background and the New Investor
Jeffrey Simpson and Jared Chassen's Arch Companies acquired a stake in the project from Babaev's Capstone in 2021, according to Crain's New York Business. Brothers Kevin and Michael Wiener also participated as investors. The project, most recently named “The Ridgewood,” faced community opposition from the outset. The death of a construction worker on the site in April 2022 and subsequent legal disputes brought the project to a standstill, according to New York YIMBY, and it was auctioned multiple times. Arch's Chassen and the Wiener brothers sued Simpson in 2023 over internal disputes, as reported by The Real Deal, and the developer was ultimately ousted from Arch in a high-profile legal battle.
Daryl Hagler is no stranger to difficult situations. The healthcare magnate and deputy chairman of El Al Israel Airlines maintains a real estate portfolio of industrial, residential, hospitality, commercial, and healthcare facilities across the Northeast and beyond, as his website shows. He has also faced legal action concerning his nursing home business, including allegations of fraud and poor conditions. Two years ago, the investor acquired the 497-unit megaproject in Sunset Park at 6128 Eighth Avenue out of foreclosure, according to TRD. More recently, it was reported that he was in talks to purchase Camp Mesorah, an Orthodox Jewish summer camp in Guilford, N.Y., out of bankruptcy. Hagler and his solicitor did not respond to requests for comment.
