National Realty Investment Advisors and numerous affiliates (“NRIA”) filed voluntary petitions for Chapter 11 bankruptcy protection in the District of New Jersey on June 7th (Case No. 22-14539). NRIA is a New Jersey-based real estate developer. According to filings with the Bankruptcy Court, NRIA owns thirty-one (31) completed properties; three (3) properties which are near completion; and sixteen (16) which remain to be completed and/or are in the planning stage per NRIA’s independent manager, Brian Casey. The value of these properties currently is asserted to be $225 million, with future stabilized values asserted to be over $1 billion.
As of the bankruptcy filing, NRIA estimates approximately $10 million in obligations to trade vendors and other unsecured creditors in addition to $38 million in secured debt and approximately $540 million of preferred limited liability company interests held by 2,000 investors.
NRIA’s stated goal for these chapter 11 cases is to provide the Debtors with a breathing-spell to prevent a disorderly liquidation through Subscriber redemptions, and to review and potentially reject and/or terminate disadvantageous contracts.
The Bankruptcy falls on the heels of subpoenas and/or requests for information from the United States Attorney’s Office for the District of New Jersey, the SEC, the New Jersey Bureau of Securities, and other state agencies in Alabama and Illinois. In addition, in March 2021, the United States Attorney’s Office in New Jersey charged Nicholas Salzano, a terminated portfolio manager and advisor to NRIA, with wire fraud and identity theft, in connection with an offer to sell an interest in the Debtor’s fund.
NRIA’s largest creditors include Cipolla & Co, Ryan Blanch, Red Seat Ventures, LLC and iHeart Media.
COPYRIGHT © 2022, STARK & STARKNational Law Review, Volume XII, Number 164