Shabselses Sell 50 Properties Amid
David and Michael Shabsels are selling approximately 50 properties through Damis Holdings as they face bankruptcy and a Department of Justice lawsuit.
David and Michael Shabsels are selling off approximately 50 properties as they navigate bankruptcy and a mounting pile of litigation. The portfolio, held by their firm Damis Holdings, comprises more than 5.8 million square feet of commercial space and nearly 3,000 residential units, according to a report from Bisnow.
The brothers have tapped A&G Real Estate Partners to oversee the sales. The properties span 22 states and include a variety of asset types: office, industrial, multifamily, and retail. The portfolio also features several resorts, including Rocking Horse Ranch, 1000 Acres Ranch, and Splashdown Beach.
Mounting Legal Troubles
The sale comes as the Shabselses face a Department of Justice lawsuit filed this week. The lawsuit alleges the brothers concealed relationships between their various companies to improperly obtain $13 million in pandemic-era Paycheck Protection Program loans.
Earlier this year, their parent company, Simad Holdings, defaulted on about $214 million in Israeli bonds. This followed revelations, reported by The Real Deal, that the Shabselses had transferred $34 million to their other companies without approval and could not recover the funds. The Real Deal's investigation also accused the brothers of heavily leveraging their real estate portfolio while plundering the properties.
The Shabselses’ bankruptcy attorney did not respond to Bisnow’s request for comment.
Resort in Distress
One of the assets for sale is the 1000 Acres Ranch, an all-inclusive resort in the Adirondack Mountains that operates from May to November. In court, the Shabselses’ attorney stated the owners were already in default on payments to a lender when the property filed for bankruptcy.
The lender allegedly swept the resort’s bank account, leaving it at a negative balance as of June 11, during peak season. Court records indicate the ranch needs more than $1 million to operate every season.
Previous Camp Auctions
Damis is separate from Simad, which operated about 30 for-profit summer camps catering mainly to Jewish families. Simad was also put into bankruptcy earlier this year, and the vast majority of its assets have already been sold.
The Real Deal reported the camp portfolio drew significant interest, with bids from private equity firms, operators, and parents of campers. The results of the auction and private sales for the Simad camp portfolio are detailed below.
| Camp Name / Sale Type | Buyer | Sale Price | Notes |
|---|---|---|---|
| 22 sites at auction | Various | $368M | 7% above appraised value |
| Camp Mohawk | FitzWalter Capital Partners | $120.8M | Exceeded stalking horse bid of $80M |
| 4 camps (incl. Camp Chen-a-Wanda) | Private Sale | Not specified | Sold via private sales |
| 3 camps | Not sold | N/A | Excluded due to ongoing litigation |
Camp Mohawk in White Plains, New York, sold to FitzWalter Capital Partners for $120.8 million, far exceeding a stalking horse bid of $80 million from Warner Bros. CEO David Zaslav. Four other camps, including the foundational Camp Chen-a-Wanda, were offloaded through private sales. Three camps were not part of the auction due to ongoing litigation.
In addition to the corporate bankruptcies for Simad and Damis, the Shabsels brothers have filed for personal bankruptcy. A&G Head of Real Estate Sales Andrew Jacobs said in a statement that the firm plans to price and market each Damis property on its own terms, rather than treating the portfolio as one uniform group.
