Completed $506 million sale of the Denizen in Brooklyn
The most significant transaction completed by Hwang in 2021 was the $506-million sale of the Denizen. The Denizen consists of two buildings: 123 Melrose Street and 54 Noll Street. The buildings are set on a campus-like setting spanning two full city blocks across 770,000 square feet. Developed by All Year Holdings, the Denizen is situated on the site of the former Rheingold Brewery and once completed, the project kickstarted the transformation of a desolate, industrial area of Bushwick into a vibrant residential community in one transaction.
The successful sale of this property was critical to the continued revitalization of the surrounding neighborhood. Hwang was brought in to sell the asset after it became distressed during the Covid-19 pandemic and the owners defaulted on their debt (including multiple loans and Israeli bonds). It was determined, with Hwang’s assistance, that selling the properties was the best course of action, and that selling and keeping the properties together was also strategically important for both legal and operational issues.
Hwang marketed the properties and had to navigate both the seller’s well-known financial distress as well as the diverging interests of multiple stakeholders to successfully be able to structure a deal that all stakeholders would agree to. After finding and selecting the buyer, the property had to be taken through a Chapter 11 bankruptcy proceeding before the buyer could close and obtain clean and free title to the property.