‘Rose’ developer has own thorn — he’s bankrupt!

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Here’s another reason why the would-be developer of an 800-unit apartment complex on the South Williamsburg waterfront is so desperate to get his site’s zoning changed from manufacturing to residential: He’s belly up.

A bankruptcy court ruling shows that Isack Rosenberg — who owns the Kent Avenue lumber yard that he hopes to transform into the glittery “Rose Plaza on the River” — owes Capital One upwards of $50 million from an unrelated real estate project in Williamsburg. The bank holds the mortgage in a condominium venture referred to in court papers as the “McCaren [sic] Project.”

It is unclear where the project is and what payments Rosenberg failed to make that triggered his bankruptcy filing earlier this year.

By court order, Rosenberg has until Dec. 21 to pay off Capital One, either by selling the project or finding the cash by other means, according to the bankruptcy document.

As such, Rosenberg is trying to raise money by seeking a city rezoning of his lumber yard site from manufacturing to residential — a move that would vastly increase the property’s value.

Last week, Community Board 1 overwhelmingly rejected Rosenberg’s rezoning bid, complaining that only 20 percent of the 3.7-acre complex would be set aside as below-market-rate-housing. Members also complained that 95 percent of the units were smaller than three bedrooms, a particular affront to members of the Hasidic community, which tends to have large families.

That CB1 vote was not without its juicy backstory, however. Rosenberg is a member of the Aroni faction of the deeply riven Satmar community. A rival, Rabbi David Niederman, is not only a member of Community Board 1, but an influential rabbi in the Zali faction.

“These guys have been rivals for years,” said one Hasidic insider.

Neiderman has said that he rejected Rosenberg’s rezoning request on the merits, but he has supported similar rezonings with the same level of affordable housing in the past. And Niederman is an enthusiastic proponent of the 31-acre Broadway Triangle rezoning in East Williamsburg, a site at which his group, the United Jewish Organization, won the development rights in a controversial process earlier this year.

Updated 5:15 pm, July 9, 2018
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Reasonable discourse

peter from greenpoint says:
I happend to be at the cb1 meeting .all the board memebrs voted down the project for many reasons, mostly that it only has 20% low income and the apt sizes was not a reflection of the local community needs .only 8 three bedrooms apts .
its is also quite clear that this project came last year before the urlopp commette and was told this project will not get cb1 apporval in the way it was presented .but they came back again with the same plan.except for one board member who is a jerk and tried to use politics as a spin.
I am wondering if all the cb1 members belong to any side wich you mention in your is allso clear that the owner will not develop this project,he will just sell it . the local community will not benefit anything from this project .
Dec. 7, 2009, 1:38 pm
Martin from Williamsburg says:
This politics Niederman has towards the other jewish congregation and yeshivas, dictates his decisions even its hurting our own community.

He abused his authority, he is guided with a simple curropt mindset of power, and power and power.

He will always be a blockade for agreements and solutions in this community, because of his inner politics.

Dec. 7, 2009, 2:49 pm
joel from Willamsburg says:
this is not the first Isacc Rosenberg Bankrupt its his # 4 about 4 years he went bankrupt on his catering hall ROSE CASTEL
Dec. 7, 2009, 3:46 pm
ben from Brooklyn says:
Rosenberg is a good man bot no money . he allways worked with others money
Dec. 7, 2009, 3:50 pm
yitzchuk from certifeid lumber says:
Certifeid lumber is money hungery
Dec. 7, 2009, 3:54 pm
Sam from Brooklyn says:
Every Developer should have a set of rules to follow to gain approval, The Community Board is shaking down this Developer due to local chasidic politics. No other Developer in CB1 has provided more than 20% affordable on privately owned sites in Brooklyn and Queens. Asking for large apartments is asking for units for one ethnic group, leaving the local Hispanic Groups without access to large units given how the application lottery process works. Councilwoman Rayno had it right at the CB.
Dec. 8, 2009, 3:29 pm
John from Greenpoint says:
Everyone should be suspicious of the decisions on Broadway Triangle cutting out other local organizations like St Nicks and Los Sures who have been involved with the Area Planning over the last 20 plus years. Ridgewood Bushwick being designated is an affront to years of work. People should be suspicious of the deals including how sponsors are made without a competive process. Rayna is right to blow this open. The CB is mislead by political insiders. Bloomberg thought this was a good proposal, and met all City standard, but the CB is attempting a shakedown of a longtime businessman who may have financial issues. He obviously can bring in first class builder/developers to deliver a first class design. All discussion has focussed on the Religious aspects of apartmentdistribution mix and percentages. No discussion of the building and open space the Community gets and JObs from both Construction and onsite permanent.
Dec. 8, 2009, 3:42 pm
drussell from williamsburg says:
The other Rosenberg site where he has defaulted on a Capital One loan is 204 North 11th Street, AKA Warehouse 11. Supposedly, he has found financing to complete the project and has listed 18 units for sale at "fire sale" prices of $550 per SF.
Jan. 12, 2010, 1:30 pm

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