Exclusive: Marina in Brooklyn Bridge Park files for bankruptcy

ONE°15 Brooklyn Marina, Estuary restaurant and sailing club in Chapter 11

September 28, 2024 Brooklyn Eagle Staff

The motor yacht Vanish, roughly 235 feet long, docked at ONE°15 Brooklyn Marina in Brooklyn Bridge Park in July 2023. Eagle photo by Mary Frost

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BROOKLYN BRIDGE PARK — Four holding companies that oversee ONE°15 Brooklyn Marina in Brooklyn Bridge Park, along with the affiliated waterfront Estuary restaurant and the sailing club that operates out of the marina, filed for bankruptcy on Thursday, the Brooklyn Eagle has learned.

Sailing enthusiasts, Brooklyn Heights residents and park neighbors were shocked to learn of the filing. Located beside Pier 5, the marina offered water access to not only boats of all stripes — from elegant superyachts to restored historic vessels and modest sailboats — but also provided free and low-cost community boating programs to students and nonprofit groups.

The beautiful Hudson River sloop Clearwater at ONE°15 Brooklyn Marina. Photo: Mary Frost, Brooklyn Eagle

The primary entity, ONE°15 Brooklyn Marina, cited insurmountable debt dating back to the construction problems of the marina site itself. Long considered a difficult marina site, even prior to the construction of Brooklyn Bridge Park, the pier construction and wave abatement issues were major. The confluence of New York Bay, the East River, and even tidal flow emanating from the Hudson River, created a challenge for any active marina.

In their bankruptcy filing, the owners cited “steadfast funding and numerous subsidies and assistance provided by the government during COVID” as the primary factors that allowed them to remain in business following their three-year delay in opening the marina.

The Statsraad Lehmkuhl, Norway’s historic three-masted tall ship, sailed into ONE°15 Brooklyn Marina in December 2021. Photo: Mary Frost, Brooklyn Eagle

Also cited in the filing was back rent of more than $500,000 owed to Brooklyn Bridge Park.

Under Chapter 11 of the bankruptcy statutes, the owners seek protection from debt that would allow them to find a viable buyer to take over the marina and other entities.

The sun set beyond the marina at Brooklyn Bridge Park. Photo: Will Hasty/Brooklyn Eagle

“It seems like they tried to identify a buyer prior to filing for bankruptcy but were unable to do so,” Adam Stein-Sapir, a bankruptcy expert at Pioneer Funding Group, told the Eagle.

He added, “Fortunately, bankruptcy actually improves the prospects for a sale because it allows buyers to acquire the business free and clear of all liens. That means the buyer is not liable for legacy liabilities (debt, environmental, etc.).”

Captain Kelli Farwell, left, with actor/producer Matthew Rhys, at ONE°15 Brooklyn Marina in 2021. Rhys and Farwell restored Rarebit, one rare original Wheeler Playmates. Photo: Mary Frost, Brooklyn Eagle

The filing cited four different entities owned by Estelle Lau, principal. They include ONE°15 Brooklyn Marina, ONE°15 Restaurant (aka Estuary), ONE°15 Sail Club and the holding company One Edge Marina Finance Company.

The group is represented by Kirby Aisner & Curley, a law firm based in Scarsdale, NY.

The Eagle has reached out to the marina and to Brooklyn Bridge Park, but did not hear back by press time.