The new owners of One Canal Place, the 32-story office tower at the foot of Canal Street, have filed for Chapter 11 bankruptcy protection less than three months after acquiring the high rise for $28 million.
Brothers Michael and David Shabsels, New York-based real estate investors who acquired One Canal Place in March, placed their sprawling network of companies in bankruptcy on June 5 in New Jersey, reporting assets of between $100 million and $500 million and debts of between $500 million and $1 billion, court records filed as part of the restructuring process show.
The local office tower is among about 80 properties across 24 states, including office buildings, shopping centers, apartments and summer camps caught up in the complex case. It also involves a local lender. Fidelity Bank, which holds a $20 million mortgage on the building, is among the brothers’ creditors…