Empty Since Late 2014, The Former P.J. Hanley Space On Court Street In Carroll Gardens Finally For Rent

It has been so very long since the former Irish tavern P.J. Hanley at 449 Court Street on the corner of Third Street has stood empty. The bar, one of Brooklyn's oldest, was tangled in a messy bankruptcy proceeding between the Hanley family, who owns the building, and the last tenant of the commercial space, James McGown.

(Many may better remember McGown as the owner of 320 Court Street, which housed Buschenschank for a number of years.)

McGown, known as 'the bankruptcy baron' for the trail of failed businesses and real estate investments he left in New York City, took over Hanley's in 2005. By February 2013, he filed for Chapter 11 for the bar. Months before, he had done the same for his South Brooklyn Pizza chain that occupied the retail space next door at 451 Court Street.

Rather than vacate the premises to return it to the Hanley family, he remodeled the space (without permits) and renamed the bar Goldenrod.

The matter ended in court when the Hanley family accused McGown of having "breached his lease by making substantial alterations without getting consent from the building owner or the Department of Buildings" and for paying rent only sporadically. The Hanleys began eviction proceedings and City Marshals finally seized the property in November 2014.

The place has been empty since then.

That may soon change. A PMFA reader alerted us to the fact that a new "space for lease" sign has gone up at the former bar  and the former pizza place just this past week. Newmark Knight Frank, a commercial real estate brokerage firm, has the listing.

It would be wonderful to see a new tavern or restaurant bring some life back to this corner of Carroll Gardens. What type of establishment would you like to see here? What do you think would do well.

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This Time, Buschenschank On Court Street Is Definitely Closed

(Credit: yelp.com)

Buschenschank, the Tyrolean Bistro Pub at 320 Court Street in Carroll Gardens, recently closed its doors for good. This should not come as much of a surprise to many in the neighborhood.

The owner of the eatery, James McGown, who was also the proprietor of the eatery, has had quite a few problems in the last few years. Most, it would seem, were of his own making.

As it was widely reported, McGown has declared bankruptcy seven times since 2009. Last year, in an effort to hold on his real estate investments, he hosted an auction of several of his properties in Brooklyn. But the buildings failed to fetch the prices McGown had in mind, so he cancelled the potential sales.  Finally, this past September, Auction Advisors was appointed to auction off the properties as part of foreclosure proceedings. During a street-side auction, 320 Court Street fetched $4.95 million. The buyer, according to Crain's New York was Seth Weissman, "a 33-year-old real estate investor who owns about a dozen properties in Brooklyn and Harlem."

The closing of Buschenschank was therefore just a matter of time. Since it opened in 2011, the gastro-pub was a rather terrible neighbor to those living nearby. It had amassed an impressive amount of noise complaints. The NYC Building's Department also issued quite a few violations. Then there was the matter concerning the establishment's illegal basement music venue which features a full bar, but violated occupancy laws and are codes. In 2014, a fire broke out in the basement, and though it was quickly put out and happened during the day, it illustrated the potential danger.

The place was such a problem that Community Board 6 recommended to the N.Y. State Liquor Authority to not renew its liquor license, which the Board rarely does. (Unfortunately, the SLA had already renewed the license before CB6 could make a recommendation.)

In short, Buschenschank was a shady business and its owner was all too willing to push the envelope. Hopefully, the new owner will find a worthier commercial tenant to take over the space.

Are you glad to see Buschenschank go, or will you miss it? We would love to hear your thoughts.

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The Buschenschank Building At 320 Court Street Back On Market With Suggestion To Turn Into 1-Family

Listing for 320 Court Street on Trulia

Listing on Zillow

Exactly a year ago, restaurateur James McGown, tried to sell off  several of his Brooklyn properties at a "pre-foreclosure" auction held at the  Brooklyn Marriott Hotel.

The move did not come as a surprise. McGown,  whose questionable business practices, string of bankruptcy filings and dilapidated buildings, had been forced to close several of his other eateries, including Goldenrod, in the former PJ Hanley space.

Included in the March 2015 auction was the three-story brick corner property at 320 Court Street, which houses McGown's Buschenschank, a "farmhouse style tavern inspired by the Alto-Adige region in Italy" and the Ratskeller, an illegal private events space in the basement.

The estimated value of the building, according to the offering, was $9.4 million. The description stated that the storefront was owner-occupied and would be delivered vacant.

However, the auction did not go as planned and several properties failed to get any offers.
320 Court Street only received one bid for $3.8 million. McGown, obviously disappointed, released a statement saying that he was "reconsidering the sale process."

Now, twelve months later, the "Bankruptcy Baron" as he has been called in the press, has obviously come up with a new approach.  He is offering the Buschenschank building for the slightly reduced price of $7,200,000.  

A PMFA reader sent us the link to the listing on Zillow just yesterday. 

Strangely, the listing suggests turning the 6,000sqft 4 bedroom, 4 bath building into "a one family home." 

"It seems like a weird suggestion for that building," wrote the reader.  

I agree, especially since the second floor has also been used as commercial space and currently houses Lift, which offers floatation pods for restricted environmental stimulation therapy. 

Do you think McGown will get his asking price this time?  How about the idea of turning the building into a one family home?

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James McGown's Pre-Foreclosure Real Estate Auction Of Several Properties In The Neighborhood "Did Not Go As Well As Planned"

320 Court Street in Carroll Gardens

I received several reports regarding restaurateur James McGown's pre-forclosure auction of several properties in Carroll Gardens and Gowanus, which was held this past Friday. March 27th, at the
Brooklyn Marriott Hotel.

According to one source, about 80 people attended the auction, which was conducted by East River Mortgage Corp., a defunct corporation owned by McGown, which filed for Chapter 11 in 2012.

Among the properties up for auction was 320 Court Street, the building currently housing the gastro-pub Buschenschank, an illegal private events space in the basement, and soon, a floatation therapy business on the second floor.
Though McGown had valued the building at $9.4 million, it was 'only' bid up to $3.8 million at Friday's auction.

Another source reported that several of the lots being auctioned off didn’t get any offers, "so the auctioneer said he’d come back to them at the end. Others were going for $1.2 million to - $1.5 million."

The long neglected buildings at 555 Union Street and 557 Union Street, received bids from the same buyer for $1.2 million each.

Obviously, McGown was disappointed with the results. Shortly after Friday's auction, he made the following announcement via email:
The auction did not go as well as planned. Several properties did not have offers sufficient to cover lien amounts so we could not accept them. Other bidders failed to produce down payment checks after bidding on the properties. As a result we are reconsidering the sale process.
We are currently offering the following properties for sale:
1511 Pacific St for $160,000 or best offer.
557 Union Street--$2M
555 Union St--$2M

The term of sale for the properties stipulated that the owner reserves the right to cancel any of the sales, so he does not need to accept any of the bids.

None of this probably comes as a surprise to those who have had dealings with McGown in the past. After all, he has become notorious for his questionable business practices, string of bankruptcy filings, and dilapidated buildings, which has earned him the nickname "bankruptcy baron" in the press.

It will be interesting to see what happens next.

555 Union Street and 557 Union Street in Gowanus were offered at the auction,
but the bid was not accepted.

(photo credit: www.google.com/maps)

 

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Giant Bathtub Mystery Solved: "Float Ventures, LLC" To Occupy Space Above Buschenschank on Court Street

The second floor of 320 Court Street will soon be providing floatation therapy.

One of the enormous tubs that were delivered to 320 Court Street in February

A few weeks ago, PMFA readers had a bit of fun trying to guess what business was moving above Buschenschank, James McGown's Tyrolian gastro-pub at 320 Court Street after a reader had taken photos of several enormous tubs which were being delivered to the address.
Some readers though they were birthing tubs, some others thought they were for swinger parties.
Those who guessed that they were floating tanks seem to have been correct.

Someone just forwarded me a copy of a the-year commercial lease agreement that was signed back in October 2013 between James McGown's Brooklyn Renaissance, LLC and Float Ventures, LLC., a business which will be offering floatation therapy.

Strangely, the agreement states that the landlord acknowledges that Float Ventures, LLC. "is reliant upon a lack of noise" and that he will "shall undertake reasonable efforts to ensure that the other tenants of 320 Court Street utilize their respective premises to minimize disruption to the Business due to sound."
That may be a bit difficult considering that there is a loud pub directly underneath the floating tanks.

James McGown is auctioning off 320 Court Street together with some of his other Brooklyn properties at a pre-foreclosure" auction, which will be held at the Brooklyn Marriott Hotel today, March 27th, 2015  at 10 AM. 

A description of the 320 Court Street building estimates its value at $9.4 million. It states that the storefront is owner-occupied and will be delivered vacant, so perhaps the noise emanating from  Buschenschank.

According to a source, Float Ventures is putting the finishing touches on the second floor space and plans to open soon.

Meanwhile, a PMFA reader sent along the photos above of the second floor of the building bathed in black light.   He writes:
 "They’ve built out three interior private rooms, and the door was open to one of them- someone was working in there. There’s some weird shape in the room but for the life of me, I couldn’t even really figure what shape it was. I imagine it’s something that goes over one of those big tubs. Combine that with the black light, and it seems a little weird."

For fun, the reader also sent along a clip of the classic Altered States, Ken Russell's film featuring LSD and sensory deprivation tanks.

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Buschenschank Owner Offering Court Street Building and Several Of His Other Properties At “Pre-Foreclosure" Auction

Restaurateur James McGown, whose questionable business practices, string of bankruptcy filings and dilapidated buildings, have drawn quite bit of attention in the past, is closing his Tyrolian gastro-pub, Buschenschank, at 320 Court Street.

This follows the closing of several of his other eateries, including Goldenrod, in the former PJ Hanley space.

Obviously, McGown seems to have a penchant for pushing the envelope. In the case of Buschenschank, noise complaints, Buildings Department violations and illegal use of the basement as a music venue prompted Community Board 6 to disapprove a renewal of its liquor license back in 2014.

McGown's apparent financial problems  are now prompting him to put the 320 Court Street building as well as several other properties in and around Carroll Gardens, up for sale in a “pre-foreclosure" auction which will be held at the Brooklyn Marriott Hotel on March 27th, 2015 10 AM. The auction is conducted by East River Mortgage Corp.

A description of the 320 Court Street building estimates its value at $9.4 million. It states that the storefront is owner-occupied and will be delivered vacant.

A PMFA reader sent me a copy of the "Terms of Sale" for the properties and notes that they are particularly interesting.  The reader noted:

"I’ve been told that no one in his/her right mind would bid under such conditions.his “terms of sale” are that the “time is of the essence” clause applies only to the buyer, which as I understand it, means he can put of the sale as long as he likes (meanwhile holding on to the deposit!), and that he reserves the right to cancel any sale, which I think means that after the auction he can decide which properties he wants to close on and which he'll keep, using the money from the others to pay off his debts, “renovate", etc. All of which seems to me typical of the way he conducts business, and woe to any buyer who gets ensnared!"


Below please fine the terms of sale for the properties:

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Early Fire At Buschenschank On Court Street Forershadowed By A Tweet?

Photo credit: Liza Kindred

This morning at around 6:30 am, a fire broke out at Buschenschank, at 320 Court Street. It was quickly subdued, though Court Street was still blocked at Sackett Street at around 7:30 Am.
According to reader Simon van Kempen, who alerted me to the incident, the fire may have broken out in Buschenschank's basement, since there was visible damage on the ground floor.
To insure that the fire hadn't spread, firemen also had to break through the the door of Scotto's, the neighboring wine store.

Reader Liza Kindred wrote this account of the fire:
"I thought your readers might be interested to see these pictures–it doesn't seem like anyone was hurt, thank goodness. We were woken up this morning to a lot of sirens, and it quickly became obvious that the building that Brooklyn Buschenschank is in (320 Court Street) was on fire. There was black smoke coming out of the restaurant, and firefighters inside and on the roof. There were a couple of children on the sidewalk that seemed to have been evacuated from the building. We also saw the firefighters breaking the door into Scotto's Wine Cellar next door–how sad to see them going through the window celebrating Scotto's 80 years in business!
Glad to see no one seemed hurt, but sorry to see all the damage."

Both Liza and Simon pointed to yesterday's tweet on Buschenschank's Twitter account:
"The fire is on and lunch and brunch are being served till 4pm..... Then happy hour starts at 4 till 8 $5."
How coincidental is that?

Yesterday's ominous tweet on Buschenschank's twitter account

Thankfully, the fire did not start during the evening hours, when Buschenschank can be packed. Previously, I have written about the establishment's illegal basement music venue and about the illegal work on the building. And then, of course, much has been written about owner/restaurateur James McGown's questionable business practices, string of bankruptcy filings, and dilapidated buildings.

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Prost! New South Tyrolian Tavern "Buschenschank" To Open Soon On Court

The former OTB office at 320 Court Street at Sackett has been empty for quite a few years now. A while back, a French oyster bistro called appropriately "Huitre" was to be occupy the space, but that never happened.

Just recently however, work behind the construction fence has resumed, and at the end of the month, Buschenschank, a South Tyrolian inspired tavern will be opening in the space. It's the latest venture of restaurateur James McGown, already known in the neighborhood for his South Brooklyn Pizzeria at 451 Court Street. Along with Italian/German wines and beer from that region, Buschenschank will be serving stick-to-the-ribs German specialties like Knödels, Wurst and Schinken.

And, according to The Village Voice, weekly music events will focus on German rock and pop bands.

Na dann, liebe Brooklyner, Prost!

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