An anonymous lender through the company Southeast Debt LLC filed a pre-foreclosure action against the 41-unit Williamsburg, Brooklyn, rental building at 188 South 3rd Street that was security for a $10 million loan Yoel Goldman signed for in 2017. LINK
The original lender Customers Bank sold the note to Kawa Capital Solutions, and Kawa sold it to Southeast Debt LLC on March 3, 2022.
Court filings are the positions of one party and are not necessarily accurate or complete.

According to the complaint, “By “Notice of Default” dated July 9, 2021 from Prior lender to Defendant, Defendant was notified that an Event of Default had occurred under Section 18 of the Consolidated Mortgage, because of its continuing failure to pay Taxes in accordance with Section 4 thereof, from and after July 1, 2019. By Notice dated March 10, 2022 (Exhibit I hereto), Plaintiff’s counsel notified Defendant, Guarantor, DCP Equity and others that while no new notice was required as the acceleration of the Consolidated Mortgage remains in full force, Defendant was afforded until March 21, 2022, to pay to Plaintiff the full amount due under the Consolidated Mortgage. As of that date, the Past Due Taxes have been advanced in the sum of $358,225.44. Current taxes, in the sum of $79,578.87, also remained due and owing. Additionally, through March 1, 2022, there was due and owing default interest of $1,260,473.79, together with the remaining principal balance of $9,543,019.19 (exclusive of the March payment of $43,782.09).” An attorney for the lender sent a notice to tenants saying in part: “Lender’s commencement of a foreclosure action is imminent, and rent must be paid to Lender. If it is not, Lender has the right to begin an action against you for the sums unpaid. Moreover, should you pay the rent to your landlord Mortgagor, you will be required to pay it, nevertheless, to Lender, thus paying twice. It is suggested that you avoid this and the other problems that may result from your refraining from paying as herewith demanded. Finally, you are invited to discuss all this with an attorney of your choosing so there will be no misunderstanding of this most important matter. In any event, however, the rent is due, must be paid per this letter, and you should be guided accordingly.”

Property

The 188 South 3 Street parcel has frontage of 75 feet and is 95 feet deep with a total lot size of 7,125 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.4 million.The most recent loan totaled 0.0 and was provided by Kawa Capital Solutions on 2021-06-24 00:00:00.

The walkup building in Williamsburg has 29,838 square feet of built space according to PincusCo analysis of city data. The property is owned by All Year Management.

The 29,838-square-foot property generated revenue of $920,029 or $31 per square foot, according to the most recent income and expense figures.

According to city public data, the property has received 27 housing violations and $1,000 in OATH penalties in the last year.

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $10 million commercial foreclosure concerning a loan filed on August 12, 2022, by SOUTHEAST DEBT LLC against Yoel Goldman.

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 116,382 square feet of the 190,719 square feet. The largest owner is Stanislaw Majkut, followed by All Year Management and then Moses Steinmetz. There is one active new building construction project totaling 24,125 square feet. It is a 30-unit, 24,125-square-foot R-2 building developed by Michael Reznik with plans filed August 7, 2014 and permitted June 3, 2022.

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

Over the past five years, there have been three NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were three renovation/alteration projects (A2) applied for with a total estimated value of $129,000.

The PincusCo database currently indicates that All Year Management owned at least 123 commercial properties in New York City with 1,127,157 square feet and a city-determined market value of $183.9 million. (Market value is typically about 50% of actual value.) The portfolio has $69.6 million in debt, with top three lenders as Downtown Capital Partners, Signature Bank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 57 percent of the 1,127,157 square feet of built space are walkup properties, with elevator properties next occupying 16 percent of the space. They are all located in Brooklyn.

Within a 400-foot radius of 188 South 3 Street, Pincusco identified two commercial real estate items of interests occurred over the past 24 months. Of those two items, two were loans above $5 million totaling $93.4 million. The most recent of the two was Metropolitan Realty Group which borrowed $74.5 million from Lument secured by the 16,400-square-foot, 20-unit rental (C1) on 209 South 3rd Street and 11 other properties on March 30, 2021.

The owners according to the Department of Housing Preservation and Development includes David Friedman, head officer and Naftali Gestetner, agent. The business entity is 188 South 3rd Street Llc.