Manhattan Country School, a private institution known for its progressive curriculum, has closed and will be selling its Upper West Side building at 150 West 85th Street. The schoolhouse was appraised at $39 million in 2021, according to bankruptcy documents reported by PincusCo. KTR Real Estate Partners conducted the appraisal.
Albert Togut, bankruptcy trustee for the building owner, confirmed plans to sell the property and said commercial real estate broker Bob Knakal of BKREA has been hired to handle the sale. “It’s a beautiful building [that] I hope can be bought by another school,” Togut stated in an email. “Of course, I will entertain offers from whomever.”
The closure follows a year of financial struggles for Manhattan Country School. The school purchased the six-story elevator building in 2015 from The New School as part of an expansion plan after applications increased during the mid-2010s. At that time, its previous facility on East 96th Street was about 14,000 square feet—too small for growth ambitions.
To finance the purchase and renovations, Manhattan Country School used its endowment and borrowed around $20 million through tax-exempt bonds. However, expansion efforts were hindered by challenges brought on by the pandemic.
The school’s educational approach emphasized equity and sustainability, offering sliding-scale tuition so students paid what their families could afford. Students also attended programs at a farm in Roxbury, New York—a property costing about $1 million per year to operate.
As remote learning continued into 2021, some higher-income families left or chose other schools. This loss of revenue made it difficult for administrators to raise tuition or cover operating costs.
Flushing Bank held much of the school’s debt and filed for foreclosure last October when payments lapsed. To remain operational into this year, Manhattan Country School relied on loans from board members and advance student deposits.
In May, facing mounting debt—including $3.8 million owed directly to Flushing Bank and approximately $25 million more through a trustee—the school filed for bankruptcy protection. A co-owning entity did likewise this week.
An attempt to secure an additional $8 million loan from Casa Laxmi Foundation was blocked after Flushing Bank objected; Casa Laxmi’s CEO had assumed control over the school’s board as part of that proposal. A bankruptcy judge ultimately rejected this loan arrangement.
Legal counsel representing Manhattan Country School did not immediately respond to requests for comment regarding ongoing bankruptcy proceedings.
