Lawsuits, foreclosures, judgments, investigations — it’s all finally caught up to Second Development Services founder Louis Greco.
The developer filed for personal Chapter 11 bankruptcy protection last week, Bisnow reported, estimating between $100 million and $500 million in liabilities against only $10 million to $50 million in assets. The bankruptcy case will be combined with an earlier one filed by Greco’s wife, Linda.
The bankruptcy filing was first reported by PincusCo. A company owned by Greco with common creditors and ownership also filed for bankruptcy.
“I am a real estate developer by profession and I have enjoyed great success and great failure,” Greco wrote in the filing. “Currently, my failures are now overcomplicating my life and require bankruptcy intervention.”
To help dig out of the hole, Greco and his wife plan to sell a handful of condominium units at a building in Brooklyn Heights with a combined estimated value of $14 million.
Greco is also looking to dodge a judgment in a lawsuit regarding a project at 232-40 Smith Street, where North Hill Capital Management won a $30 million award in 2023. Two days before Greco filed for bankruptcy, a court filing said the lender could seize a 50 percent stake in the property and the limited liability company Greco owns it through.
North Hill is the only secured creditor in a group of nearly 100 total creditors, which includes former business partners, banks and government entities, including the IRS.
Despite the financial malaise, Greco doesn’t seem fazed, telling Bisnow that “current projects will not be affected” and new projects will be pursued following reorganization. Greco claims to have developed more than 100 projects, including 1 Grand Army Plaza in Prospect Park.
Among Greco’s myriad problems are a handful of lawsuits filed by residents of a six-story condo building in Clinton Hill, where Greco is accused of fraud, self-dealing and a failure to deliver on promises. The AG’s office is investigating the building and Silver Point Capital recently foreclosed on it after a $35 million loan default.
— Holden Walter-Warner
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