Report: LLC pays $44 million for the loan to the former P.S. 64

There's a new plot twist in the decades-long saga involving the former P.S. 64/Charas/El Bohio Community Center at 605 E. Ninth St. between Avenue B and Avenue C. 

According to The Real Deal, Madison Realty Capital "has sold the $44 million loan secured by the property." The buyer is reportedly 605 East 9th Community Holdings LLC, repped by David Pfeffer of NYC firm Tarter Krinsky Drogin.

A lawyer for Gregg Singer, who bought the property in a city auction in 1998 for $3.15 million, claims that Aaron Sosnick, a billionaire hedge fund manager who lives next door in the Christodora House, is behind the LLC. 

The Real Deal also published a series of emails and texts between consultant Paul Wolf and Sosnick — obtained by Singer through a freedom of information request — that show an interest in acquiring the building. (Sosnick and Pfeffer did not return TRD's request for comment, while Madison Realty Group declined.)

As we first reported, the building is headed to a bankruptcy sale on Nov. 8. Per TRD: "The owner of the loan can bid using the debt, making it the clear favorite to acquire the property."

In January 2022, Supreme Court Justice Melissa Crane ruled that Madison Realty Capital could move forward with a foreclosure against Singer after years of delay. 

Madison Realty Capital reportedly provided Singer with a $44 million loan on the property in 2016. Court records show that he failed to repay the balance by its maturity date in April 2016, and by that September, the lender filed to foreclose.

Through the years, Singer wanted to turn the one-time P.S. 64 into a dorm (more here), though those plans never materialized, and the building has sat in disrepair. The 135,000-square-foot building is zoned for “community facility use,” any conversion to a condoplex or residential housing would require a zoning variance. 

As previously noted, some residents want to see the space used again as a community center, as it was during its time as Charas/El Bohio Community Center. Singer evicted the group on Dec. 27, 2001. 

Sosnick also reportedly bought the former Boys' Club of New York on 10th Street and Avenue A, now home to the Joyce Theater, several nonprofit arts groups, and a gallery. 

In August 2019, Crain's first reported that Sosnick, founder of the investment fund A.R.T. Advisors LLC, was the new owner, buying the 7-floor building for $31.725 million with the intention of selling the property, "potentially at a substantial loss," to a nonprofit that would maintain its civic use.