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ew York’s real‑estate scene this week was dominated by setbacks. Eli Karp’s Flatbush project, once dubbed Hello Nostrand, fell into turmoil after Madison Realty Capital seized the 1580 Nostrand Avenue site with a $70 million credit bid. Karp had bought the property for $13 million in 2014 with plans for a luxury twin‑building complex. Construction stalled when lenders pulled back, forcing Karp into bankruptcy in 2021 just before Madison could initiate a UCC foreclosure. The firm then sold a $6 million mezzanine and a $73 million senior loan to Arch Companies, which sued Karp to trigger another foreclosure. Only a 93‑unit rental building was completed; it was auctioned in June alongside the undeveloped lot. Karp also lost the 2417 Albemarle Road property to a lender’s credit bid.
Alba Services, a demolition contractor, faced a $1.5 million settlement for violating New York’s workers’ compensation laws, retaliating against injured employees, and ignoring sexual‑harassment complaints. The company allegedly concealed hundreds of workplace injuries from 2016 to 2024 to keep insurance premiums low and threatened workers who filed claims. Local 79 union launched a public campaign in 2022 accusing Alba of rewarding whistleblowers who filed “false” claims. The New York Attorney General’s office will supervise Alba for at least three years and require biannual compliance reports. Alba’s troubles continued in 2023 when it was named in a 26‑company indictment over a construction kickback scheme, receiving $2.8 million in inflated contracts at 250 Fifth Avenue and 189 Bowery.
Jordan Belfort’s former Long Island mansion at 5 Pin Oak Court sold for $6.9 million. The 8,700‑square‑foot house, seized by federal authorities in 2001 after his securities‑fraud conviction, had been his residence during the 1990s. After serving two years in prison, Belfort moved to Hermosa Beach, California, and later to Miami during the pandemic. He now promotes himself as a motivational speaker.
Meanwhile, Vanbarton Group, led by Richard Coles and Gary Tischler, continues to dominate office‑to‑residential conversions. The firm secured a $280 million loan from Invesco to refinance a 455‑unit building at 980 Sixth Avenue, replacing a $273 million loan from Blackstone’s mortgage trust. Vanbarton’s recent project converted three floors of a former WeWork space into 77 market‑rate apartments. With a pipeline of over 2,000 units, the company remains a key player in New York’s residential transformation.
Your move, Nathan Berman.
