A day earlier, a separate Ostreicher real estate venture in Duluth, Endi Plaza LLC, quietly filed for bankruptcy after its lender said it falsified financial statements and defaulted on a nearly $52 million loan.
The Ostreicher arm in 2021 bought the Endi apartment complex on Duluth’s east side near the lakefront. In November, Fannie Mae sued Endi Plaza LLC and asked a state court to appoint a receiver to essentially run the company.
Endi Plaza on Tuesday filed for Chapter 11 bankruptcy protection, which allows a company to reorganize its finances while shielded from ongoing litigation and the claims of its creditors.
Ostreicher is the force behind Incline Village, a planned collection of buildings that would house 1,180 apartments, 120 condominiums and retail space. It’s expected to cost $450 million to $500 million and would sit on the 53-acre site of the former Duluth Central High School.
Ostreicher was in Duluth on Tuesday, celebrating the commencement of Incline Village’s construction with Duluth Mayor Roger Reinert and other city dignitaries. Reinert did not return a call requesting comment, nor did Roz Randorf, the City Council president.
Apart from Incline Village, Ostreicher’s investments in Duluth total $85 million, anchored by the Endi and Kenwood Village apartment and retail complexes. The Endi, located at 2120 London Road, has 142 apartments and 13,876 square feet of retail.