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aryl Hagler, a prominent real estate investor and owner of several businesses, has provided refinancing for Watermark Capital's Sunset Park development in Brooklyn. This deal comes just two weeks after Hagler settled a $45 million lawsuit with New York Attorney General Letitia James over allegations of nursing home neglect.

    Watermark secured a $42.5 million loan from an entity connected to Hagler, staving off a foreclosure attempt by Rialto Capital Group. The financing will allow Watermark, led by Wolfe Landau and Meir Tabak, to move forward with its ambitious project on the former rail yard site. The development was previously stalled after facing opposition from the local community board.

    Hagler has become increasingly active in New York real estate over the past few years, often partnering with fellow investor Rozenberg on deals. Hagler is also vice-chair of El Al and co-owner of Centers Health Care, which settled a lawsuit with James last year for $45 million. The settlement will be used to improve resident care and staffing at several nursing homes in New York.

    Watermark and Maguire Capital acquired the Sunset Park site in 2021, buying up equity interests and debt from previous developers. The project's original plan included a three-story mall, a 10-story hotel, two 15-story residential towers with 350 apartments, and a 17-story office tower. However, the new financing will allow Watermark to pursue its own vision for the site.