Sell Off of Dwek Properties Begins

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K. Hov bldg. among Dwek holdings sold
BY SUE MORGAN

The copper-colored structure along the banks of the Navesink River in Middletown that once housed home builder Kevork Hovnanian's operations has been sold for $6.1 million.

In this case, the seller of the empty building at 10 Route 35 is not development titan K. Hovnanian, but beleaguered real estate mogul Solomon Dwek, who will not see a dime of the profits handed over by the buyer, Investment Properties of America, anytime soon.

Nor will Valley National Bank, which holds a $3.6 million mortgage on the property that Dwek paid $4.8 million for in July 2005, be immediately paid the money owed to that line of credit, despite the efforts of the bank's legal counsel last week in the Freehold courtroom of state Superior Court Judge Alexander D. Lehrer.

As Dwek, of Ocean Township, sat in the back of the courtroom on June 28, Lehrer signed a court order to approve the sale of the property known as The Waterview, which until recently housed the offices of K. Hovnanian Enterprises Inc., to Investment Properties, an out-of-state property management firm.
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To date, Dwek owes a total of $180.6 million to PNC, Valley National, and 17 other banks that have loaned him money to purchase or improve his real estate, according to the Web site.

In addition, Dwek also owes a collective total of $154.2 million in claims to 60 individual creditors.
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The sale of the K. Hovnanian building and an apartment complex brought a total of $11.6 million, which will be used toward Dwek's bailout, Lehrer said.