An Aurora apartment building is again overseen by a receiver after a failed sale and exiting bankruptcy court with a reorganization plan.
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Kevin Singer of Receivership Specialists was appointed to oversee the 32-unit building at 1960 Dallas St. on June 13.
The building three blocks away from Stanley Marketplace is owned by 1960 Dallas Street LLC, which records show purchased it in October 2019 for $3.6 million. The LLC is managed by Shaul Gabbay.
In December 2020, building ownership took out a $5.2 million loan, records show.
Singer oversaw the building once before, in the spring of 2025, when lender Wilmington Trust sued and said it hadn’t received loan payments for February, March and April. But a month into the receivership, Wilmington Trust said it had reached a deal with Gabbay’s LLC that allowed him to retake control of the property.
“Receiver has made critical repairs in the course of discharging his duties, and Borrower has agreed to and has undertaken to complete that work,” Wilmington Trust said in a court filing.
Then, in January, 1960 Dallas Street LLC filed for Chapter 11 bankruptcy, saying the $4.8 million it owed to Wilmington Trust was more than the property was worth.
Another 32-unit Gabby-owned building, at 1592 Boston St., also filed for Chapter 11 at the same time. The two cases were later consolidated.
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“It didn’t work,” Gabbay told BusinessDen of his plans to turn the buildings around. “Our expenses are very high. We have high turnover.”
For a time, it seemed the buildings might get a new owner. In February, records show that Brian Watson and Grant Van Der Jagt, a Castle Rock attorney, signed a deal to pay $11.85 million for the two structures, as well as apartments that Gabbay owned at 1433, 1451 and 1463 Macon St. in Aurora — 97 units in all.
But the deal fell apart after the U.S. Trustee, a sort of “watchdog” for bankruptcy court, noted that the Macon Street properties were under receivership and that the judge in that case had not approved a sale. He also said there was no guarantee that Gabbay would use excess funds from the sale of one property to pay the lender of another property.
The bank cases were subsequently separated. Steven Mulligan, an attorney representing the buildings, requested that the 1960 Dallas case be dismissed, saying a sale of the 1592 Boston building still might happen.
A judge formally dismissed the Dallas Street case in mid-May. The Boston Street case was dismissed about a week later; the building still has not sold.
Wilmington Trust requested that Singer be reappointed as receiver on June 1, saying Gabbay hadn’t paid rent on time since December. Gabbay told BusinessDen that he expects the lender to foreclose.
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