$19.5M pre-foreclosure filed on Midtown commercial building
The special servicer for a securitized loan with an original principal of $19.5 million secured by a nine-story, 34,553-square-foot commercial building at 33 West 46th Street in Midtown owned by the Neuss family filed to foreclose on the debt, according to a complaint filed in New York State Supreme Court yesterday.
This was the 25th largest foreclosure action filed in New York City this year. There have been more than 350 commercial foreclosure actions filed in the city this year, according to a PincusCo database.
The loan was securitized into Series 2015-C20. The loan matures in 2024, but according to the complaint, the borrower stopped making payments since missing its June 2020 payment. The servicer declared the loan in default by letter September 3, 2020. The servicer declared the entire amount due almost exactly a year later, by notice on August 27, 2021.
Jorge Justo Neuss was the owner of the property, who died in October 2020, the complaint says. Nuess’s entity 33 W. 46 Realty LLC purchased the building from Extell Development in December 2009 for $11 million. Patricio Neuss was the signatory in 2013 for a large increase in debt which raised the total to $18 million. Then in 2014 the owners refinanced the debt with $19.5 million through Morgan Stanley, and that debt was securitized.
Direct link to Acris document. link