Brooklyn Developer in Danger of Losing Another Property
The setbacks keep coming for Serabjit Singh Malhotra.
The embattled Brooklyn developer is facing significant stress at 594 Dean Street in Prospect Heights, Crain’s reported, after allegedly defaulting on the $13 million mortgage tied to the building. The default was disclosed by Morningstar Credit Analytics.
The reason for the default and transfer to special servicing wasn’t clear. Occupancy isn’t an issue at the property, which has been fully leased to the U.S. Postal Service for years.
Malhotra purchased the property in 2015 for $13.5 million, part of a string of acquisitions in the borough that appear to be coming back to bite him.
The developer couldn’t be reached for comment by the publication, either individually or through his company, Management Group of Brooklyn. His attorney also didn’t return a request for comment.
It’s the latest sign of trouble for Malhotra.
In May 2024, Malhotra filed bankruptcy papers for 257 Washington Avenue, formerly St. Luke’s Evangelical Lutheran Church, four months after the property went into foreclosure. He was the second developer to own the property and to attempt to convert it into housing in the 10 years since the church was shuttered. He purchased it from Brookland Capital for $13.5 million in 2019, when Brookland was facing financial difficulties and unloading properties.
In February 2025, Michael Lévy’s Geneva Transatlantic Holdings and Andrew Bradfield’s Orange Management bought the building out of bankruptcy for $9 million. They plan to convert it into either apartments or condos.
In recent years, Malhotra has sold buildings, such as 232 Adelphi Street, and lost others to foreclosure, such as 115 Underhill Avenue and 25 Lexington Avenue, as he tries to escape distress. An affidavit pinned problems across the portfolio on difficulty obtaining financing since 2019 — forcing Malhotra to ask his wife for help — as well as pandemic-hindered construction.
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