Greenwich developer of Villa BXV condominium in Bronxville declares bankruptcy

Gateway Kensington LLC, the developer of the Villa BXV condominium in Bronxville, has filed for Chapter 11 bankruptcy protection.

The company declared assets of up to $10 million and liabilities of up to $50 million in a petition filed May 14 in U.S. Bankruptcy Court, White Plains.

Gateway Kensington is affiliated with Fareri Associates, Greenwich, and is owned and managed by John Fareri.

Bronxville chose Fareri Associates in 2015 to develop a former industrial site on Kensington Road near the village”™s business district. The 53-unit complex opened in 2017.

Gateway Kensington still holds title to seven condos, according to a bankruptcy record. The Villa BXV website lists available apartments priced from about $1.3 million to $2.9 million.

The petition does not explain why Gateway Kensington declared bankruptcy. But last month an American Arbitration Association panel awarded $14.3 million to two parties listed in a bankruptcy exhibit: James Carnicelli Jr., Scarsdale, and The Gateway Development Group, Greenwich.

Gateway Development was the construction management firm that oversaw the Villa BXV project. Fareri owns 51% of the company according to an arbitration document, and Carnicelli owns 49%; he also managed the Villa BXV construction.

Fareri fired Carnicelli in 2019 after the latter disputed his compensation for managing the Villa BXV construction.

Carnicelli demanded arbitration. He claimed that Gateway Kensington had fabricated documents to decrease the money owed for construction management and to increase the value of a personal state tax credit for Fareri, under the Brownfield Cleanup Program, to nearly $6.3 million.

Fareri testified that he was unaware of the fabrications, according to the AAA findings. The organization found his explanations unpersuasive and ordered Gateway Kensington to pay $14.2 million to Gateway Development and $104,640 to Carnicelli individually.

Eastchester attorney Erica R. Aisner represents Gateway Kensington.