Daniel and Rebecca Yarnie, the developers behind Sutton-based Polar Views, have filed for Chapter 11 bankruptcy.Multiple Polar Views properties in Worcester slated for development have sat dormant, including 40-42 Hooper St. and 119 Chandler St. The firm’s lack of development and maintenance of its properties had caught the eye of District 2 City Councilor Rob Bilotta, who mentioned it during the council’s April 16 debate over building energy codes.“There's a building in District 2 over on Hooper Street that is an absolute shambles and it's really been unsafe for the neighborhood,” Bilotta said in the meeting.Creditors owed money include David Walch of Newton-based Athens Street Capital Realty Trust and Steve Ross of Natick-based QS Private Lending, according to the Yarnies’ bankruptcy filing in U.S. Bankruptcy Court for the District of Massachusetts.Neither Daniel nor Rebecca Yarnie responded to requests for comment. MassLive was first to report on the Yarnies’ bankruptcy. The two filed for bankruptcy on April 20, according to court documents.The bankruptcy filing comes after at least 15 properties owned by the Yarnies were foreclosed on, with Ross obtaining 15 Worcester parcels through auction. Ross had provided a total of $39.12 million in mortgages for the sites, according to Worcester District Registry of Deeds.Ross did not respond to WBJ requests for comment. The foreclosed properties were then sold to Winchester-based Ricardo Pinto for a total of $38.81 million. The Worcester properties sold to Pinto were:
The Yarnies’ bankruptcy filing seemingly brings an end to their ambitious real estate and entrepreneurial efforts in Worcester. They are representing themselves in bankruptcy court. The incomplete filings did not include the total amount owed to Ross and Walch, but the bankruptcy filing has revealed the Yarnies are alleged to owe $11,552 in personal income tax to the state.Daniel Yarnie, co-owner of Polar ViewsThe Yarnies’ financial difficulties are evident in court records, with two lawsuits over missed payments relating to their real estate ventures. Harvard-based Maugel Destefano Architects was awarded a $557,719 default judgment in February, after Polar Views did not defend itself against claims it owed the company funds for architectural work done for its project at 39 Lamartine St., according to Worcester County Superior Court records.Worcester-based real estate investor Arthur Pulitzer filed a lawsuit in September seeking payment of $37,523 for loans provided to the Yarnies, which had not been paid back. The Yarnies defaulted on this case as well, with Pulitzer requesting a monetary judgement on April 16.Daniel Yarnie had previously told WBJ about the difficulties in navigating the series of hurdles faced in the development process and finding financing from traditional sources of capital as a young Black developer.“It’s like there’s like a ripple effect,” said Daniel Yarnie. “So that’s why sometimes projects prolong and people go broke. So it’s like, we all need to come together to figure out a way to make it easier.”Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
