$17M bankruptcy filed to halt UCC auction of FiDi, Tribeca properties

Two members of the Gindi family filed a bankruptcy petition yesterday in the Southern District of New York to block the UCC foreclosure sale scheduled for today, January 30, 2025, of the entity that owns two commercial properties, 90 Nassau Street in the Financial District and 385 Greenwich Street in Tribeca, in Manhattan. Those properties secure a $17 million loan given by Ladder Capital on November 5, 2021.

Case 1-25-40464-nhl LINK
Gindi 90 Nassau, 385 Greenwich Ch 11 pdf

The petitioners, Zachary and Randal Gindi, who sometimes use the name RIG Realty, purchased the property in December 2013 from the Gindi family’s discount retailer Century 21 for $21.3 million.
The petition states Zachary and Randal Gindi each own 50 percent of the entity ZRG Inc., which in turn owns 90 Nassau Street LLC and 385 Greenwich Street LLC that control the respective properties.

According to the chapter 11 petition, “Currently, the loan fell into default. Rather than commence a conventional foreclose [sic] on the Property, the Lender has elected to pursue a UCC Article 9 foreclosure sale against the membership interests of the Debtor so as to gain control of the Properties through that route.”

“The UCC sale is presently scheduled for January 30, 2025, at 9:00 a.m. Although the Debtor and the Property Owners are actively seeking potential buyers for each building, they are not yet ready to close and the Lender has refused to adjourn the scheduled UCC Article 9 sale. Accordingly, to preserve the status quo and, ultimately, the ability to maximize the value of the Properties, the Debtor has elected to seek Chapter 11 relief with the intention of subsequently commencing Chapter 11 cases on behalf of the Property Owners. This will enable the Debtors and Property Owners to conduct a bankruptcy auction or refinancing, and avoid a forced foreclosure sale.”

The elevator building 90 Nassau Street with 7 residential units in Financial District has 12,560 square feet of built space and 3,379 square feet of additional air rights for a total buildable of 15,940 square feet according to a PincusCo analysis of city data. The parcel has frontage of 31 feet and is 51 feet deep with a total lot size of 1,594 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.7 million. The most recent loan totaled $17 million and was provided by Ladder Capital on November 5, 2021.
Direct link to the property’s ACRIS page

The mixed-use building at 385 Greenwich Street with 3 residential units in Tribeca has 6,211 square feet of built space and 4,267 square feet of additional air rights for a total buildable of 10,486 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 69 feet deep with a total lot size of 1,742 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca West Historic District. The city-designated market value for the property in 2022 is $5.8 million. The most recent loan totaled $17 million and was provided by Ladder Capital on November 5, 2021.
Direct link to the property’s ACRIS page