Louis Greco, founder of Second Development Services, has filed for personal Chapter 11 bankruptcy protection. According to Bisnow, Greco estimates his liabilities at between $100 million and $500 million, while listing assets of only $10 million to $50 million. This bankruptcy case will be combined with a previous filing by his wife, Linda Greco. A company owned by Greco that shares creditors and ownership also filed for bankruptcy.
The initial report on the bankruptcy filing came from PincusCo.
In his filing, Greco stated: “I am a real estate developer by profession and I have enjoyed great success and great failure. Currently, my failures are now overcomplicating my life and require bankruptcy intervention.”
Greco and his wife plan to sell several condominium units in Brooklyn Heights with an estimated combined value of $14 million as part of their strategy to address their debts.
The developer is also attempting to avoid a judgment related to the 232-40 Smith Street project. North Hill Capital Management was awarded $30 million in 2023 following litigation over this property. Two days before Greco’s bankruptcy filing, court documents indicated that North Hill could seize a 50 percent stake in the property as well as the limited liability company through which Greco owns it.
North Hill Capital Management is identified as the only secured creditor among nearly 100 creditors in total. The list includes former business partners, banks, government entities, and the Internal Revenue Service.
Despite these financial issues, Greco told Bisnow that “current projects will not be affected” and that he intends to pursue new developments after reorganization. He claims experience developing more than 100 projects including 1 Grand Army Plaza in Prospect Park.
Greco is also facing lawsuits from residents of a six-story condominium building in Clinton Hill who accuse him of fraud, self-dealing, and failing to meet commitments. The New York Attorney General’s office is investigating the building while Silver Point Capital has foreclosed on it after a default on a $35 million loan.
— Holden Walter-Warner
