Manhattan Country School, a private institution on the Upper West Side, has closed and its building at 150 West 85th Street is expected to be listed for sale. The property was appraised at $39 million in 2021 by KTR Real Estate Partners, according to bankruptcy documents cited by PincusCo.
Albert Togut, the bankruptcy trustee for the building’s owner, stated that commercial real estate broker Bob Knakal of BKREA has been engaged to handle the sale. “It’s a beautiful building [that] I hope can be bought by another school,” Togut said via email. “Of course, I will entertain offers from whomever.”
The school had operated for decades with a mission focused on equity and sustainability, serving about 250 students from kindergarten through eighth grade. In 2015, it purchased the six-story elevator building—originally constructed in 1928—from The New School as part of an expansion plan. That purchase was brokered by Knakal’s team.
To finance the acquisition and renovations, Manhattan Country School used its endowment and borrowed approximately $20 million through tax-exempt bonds. The school also maintained a farm in Roxbury, New York, which cost about $1 million annually to operate.
However, after pandemic disruptions led some families to leave or choose other schools during extended remote learning periods—and with tuition unable to rise—the school faced mounting financial difficulties. Flushing Bank held much of the debt and filed for foreclosure last October.
In May, Manhattan Country School filed for bankruptcy protection; this week, the entity co-owning the building did likewise. Initial filings indicate roughly $3.8 million owed directly to Flushing Bank and around $25 million owed through a trustee.
An attempt to secure an additional $8 million loan from Casa Laxmi at a high interest rate was blocked after objections from Flushing Bank regarding repayment terms and governance changes involving Casa Laxmi’s CEO taking control of the board. A bankruptcy judge ultimately rejected that proposal.
The school continued operations using loans from board members and student deposits until filing for bankruptcy earlier this year. An attorney representing Manhattan Country School did not immediately respond to requests for comment.
