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KRCM Astoria Portfolio Files for Chapter 11 Bankruptcy

  • Writer: Arun Singh
    Arun Singh
  • Oct 22
  • 2 min read
Text on a gray background reads "Single-Asset Real Estate Bankruptcy in New York" with "SPE Specialists" below. Bold blue font.

On October 8, 2025, KRCM Astoria Portfolio Corp., a single-asset real estate (“SARE”) entity that owns three multifamily apartment buildings located at 23-05 30th Avenue, 23-15 30th Avenue, and 21-80 38th Street, all in Astoria, Queens, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of New York (Case No. 25-44859).


At SPE Specialists, we monitor filings like this to identify emerging stress in regional property markets and to advise stakeholders on governance, restructuring, and fiduciary strategies.


What’s Behind the Filing


KRCM Astoria Portfolio lists $10 million to $50 million in both assets and liabilities and reports that funds will be available for unsecured creditors. These assets represent mid-market multifamily investments that were likely financed under the favorable credit conditions of 2020 to 2022. As debt maturities near and refinancing options tighten, smaller operators have faced valuation declines and liquidity strain, prompting defensive filings like this one.


Why It Matters


This filing highlights continuing distress in New York’s outer-borough multifamily market, where rent caps, increased insurance premiums, and cautious lending conditions have eroded debt service coverage. Many landlords who recapitalized at lower rates in prior years are now contending with loans that cannot be extended on similar terms.


What Happens Next Under SARE Rules


Because this qualifies as a single-asset real estate case, KRCM Astoria must, within 90 days of filing, either propose a feasible plan of reorganization or begin making monthly interest payments to secured creditors.


If those conditions are not met, lenders can request relief from the automatic stay, which would permit foreclosure on the underlying properties.


Key filings, including the schedules of assets and liabilities, creditor matrix, and statement of financial affairs, will soon provide a clearer view of the capital structure, creditor exposure, and potential recovery paths.


Sources

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