L
azar “Luzy” Ostreicher, a New York developer involved in a dispute over Duluth’s former Central High School site, has lost control of Endi Plaza, an apartment complex he purchased in 2022 for $50 million. Ostreicher filed for Chapter 11 twice in an effort to stave off a receivership imposed by Fannie Mae, the primary lender. A federal bankruptcy judge last week rejected the most recent filing, labeling it “bad faith.” Consequently, the property will revert to the receivership order issued in June by a state judge. In a receivership, a court‑appointed trustee manages the property until it is sold.

    Neither Ostreicher, who resides in Monsey, N.Y., nor Endi’s attorneys responded to requests for comment. Ostreicher’s acquisition of Endi came after he launched the $500 million Incline Village project on the old high‑school site, which would have added 1,200 units on 53 acres. The Duluth Economic Development Authority terminated the Incline Village agreement in July, before any public funds were expended. Ostreicher’s first major Duluth venture was the 2018 purchase of Kenwood Village, a newer apartment building near the University of Minnesota Duluth, for $21 million.

    The bankruptcy filings were intended to block Fannie Mae’s push for receivership. Fannie claimed Endi had defaulted on a $52 million loan, missed payments, and provided inaccurate financial statements. In February, Endi asked a New York court to dismiss its Chapter 11 case, citing ongoing negotiations with Fannie, but the request was denied. Negotiations collapsed, and on June 6, U.S. District Judge Eric Hylden ordered Endi Plaza into receivership. Endi immediately filed for Chapter 11 again to halt the takeover. Fannie described the second filing as fraudulent and in violation of Judge Hylden’s order. The bankruptcy court dismissed the filing, reaffirming the receivership.