National Realty Investment Advisors goes bankrupt | Stark & Stark
National Realty Investment Advisors and numerous affiliates (“NRIA”) filed voluntary petitions for Chapter 11 bankruptcy protection in the District of New Jersey on June 7 (File No. 22-14539). NRIA is a New Jersey-based real estate developer. According to documents filed with the bankruptcy court, the NRIA owns thirty-one (31) completed properties; three (3) properties nearing completion; and sixteen (16) that remain to be completed and/or are in the planning stage by NRIA Independent Director Brian Casey. The value of these properties is currently estimated at $225 million, with future stabilized values estimated at over $1 billion.
At the time of the bankruptcy filing, the NRIA estimated approximately $10 million in obligations to trade suppliers and other unsecured creditors, in addition to $38 million in secured debt and approximately $540 million in interest. limited liability companies owned by 2,000 investors.
The NRIA’s stated purpose for these Chapter 11 cases is to provide debtors respite to prevent disorderly liquidation through subscriber buyouts, and to review and possibly reject and/or terminate disadvantageous contracts. .
The bankruptcy follows 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 agencies state in Alabama and Illinois. Additionally, in March 2021, the United States Attorney’s Office in New Jersey charged Nicholas Salzano, a licensed portfolio manager and NRIA adviser, with wire fraud and impersonation, in connection with an offer to sell an interest in the debtor’s fund.
NRIA’s main creditors are Cipolla & Co, Ryan Blanch, Red Seat Ventures, LLC and iHeart Media.
If you are an NRIA creditor, an interest holder in NRIA entities, or are interested in purchasing assets from the NRIA bankruptcy, it is important to know your rights now.