One°15 Brooklyn Marina files for Chapter 11 bankruptcy

The owners of One°15 Brooklyn Marina, located in Brooklyn Bridge Park, have filed for Chapter 11 bankruptcy protection, citing insurmountable debt.

The filing, submitted on 26 September, includes not only the marina but also its affiliated Estuary restaurant and sailing club, both of which are owned by the same holding companies. This decision comes after years of financial struggles stemming from the marina’s delayed construction and operational challenges.

The marina is managed by Singapore-based SUTL Group and owned by SUTL Investments Pte. SUTL Group has a presence in 17 markets worldwide and is led by chief executive Arthur Tay.

One°15 Brooklyn Marina, which features more than 100 slips for boats and yachts up to 250ft (76 metres), first encountered issues during its construction in 2014. According to court documents, development delays and budget overruns caused the marina to open three years behind schedule, in 2020 rather than the planned 2017 launch. The final development costs reportedly nearly doubled the initial budgeted amount. In their bankruptcy filing, the owners cite “steadfast funding and numerous subsidies and assistance provided by the government during covid” as the main reasons they were able to remain in business following a three-year delay in opening the marina.

Despite receiving government support, the businesses continued to suffer losses, leading to over $500,000 in unpaid rent owed to Brooklyn Bridge Park, as cited in the filing made this week.

‘The result of these issues was a development price tag of nearly double the budgeted cost and a three-year delay in opening from 2017 to 2020,’ the bankruptcy filing states. Investors who initially supported the project pulled out last year, compounding the financial strain and leaving the marina’s owners unable to meet expenses, including rent.

By filing for Chapter 11, the owners seemingly aim to reorganise their debts while continuing operations. The court has approved the joint administration of the bankruptcy cases for the marina, the restaurant, and the sailing club for procedural purposes, which will continue to function as separate entities. The ownership group, led by principal Estelle Lau and represented by the law firm Kirby Aisner & Curley, reportedly hopes to negotiate with creditors and find a buyer for the marina and its associated businesses. The holding companies involved include One°15 Brooklyn Marina, One°15 Restaurant (also known as Estuary), One°15 Sail Club, and One Edge Marina Finance Company.

“It seems like they tried to identify a buyer prior to filing for bankruptcy but were unable to do so,” bankruptcy expert Adam Stein-Sapir of Pioneer Funding Group tells Brooklyn Daily Eagle. “Fortunately, bankruptcy actually improves the prospects for a sale because it allows buyers to acquire the business free and clear of all liens.”

The marina, situated beside Pier 5 in Brooklyn Bridge Park, has long been a hub for water access, catering to a wide range of vessels from luxury superyachts to historic boats and small sailboats. It also offers free and low-cost boating programmes, including a sailing school, kids’ activities, and kayaking lessons for the local community.

However, the site has historically been challenging for marina development. Even before Brooklyn Bridge Park was constructed, the location’s exposure to the confluence of New York Bay, the East River, and tidal flows from the Hudson River created complications, particularly regarding pier construction and wave abatement.

The owners of One°15 Brooklyn Marina remain hopeful that they can find a buyer to take over the business.

“We are working with numerous interested parties and welcome other parties who may be interested in the project to work towards a sale that will maximize our return to creditors and put the project into good hands to continue the work we have begun,” CEO Estelle T.  Lau tells Marine Industry News. “We continue to offer an unparalleled boater experience in NY Harbor and to accept transient boats into the marina.  We plan to seek court approval to facilitate a sale process for the business to transition the project into the best hands to guide this newest addition to New York’s waterfront as seamlessly as possible.”

Lau adds: The One°15 operations team came together through the lengthy build process and subsequent challenges due to covid and remains committed to providing not only the best experience for our boaters, diners and club members, but to continuing to perform the community services we have offered since our inception. 

“We believe that the marina, sail club and food and beverage programs are an important feature of NYC’s waterfront and the challenges we face demonstrate the need for commitment of the community as a whole. But we remain certain that our vision can be achieved and look forward to the next chapter of the project.”