$19M in pre-foreclosures filed at JTRE assets

Lenders filed to foreclose on two loans totaling $19.2 million on retail assets owned by Jack Terzi’s JTRE Holdings. These are the third and fourth pre-foreclosure filings against JTRE properties in three months. The others were an $18.5 million loan at 63 Spring Street and a $42 million loan at 240 East 54th Street.

Court filings are the positions of one party and are not necessarily accurate or complete. Many retail assets have been hit hard by Covid and the general decline in retail values.

$12M pre-foreclosure in Nomad: Pine Corporate Services, which on October 1, 2021 acquired the loan from Jovia Commercial Lending, formerly known as Nassau Educators Federal Credit Union (NEFCU), filed to foreclose on the loan with an original principal of $12 million, secured by Jack Terzi and JTRE Holding’s retail building at 1177 Broadway in Nomad. Terzi bought the building in April 2017 for $13.5 million, which it financed with a $9.5 million loan from Valley National Bank at the time of the purchase. Terzi refinanced the property in November 2019 with a $12 million loan from NEFCU. According to the complaint, “The Borrower defaulted upon the terms of the Consolidated Note and Consolidated Mortgage by failing to make the payment due on the first day February 2021, and on the first day of each and every month thereafter. 30. On or about July 1, 2021, a letter of default was sent by certified mail (the “Default Letter”) to Borrower, notifying Borrower of its default under the Loan. A duly executed true and correct copy of the Default Letter is annexed hereto as Exhibit K. By reason of such defaults, the Plaintiff declares the balance of the principal indebtedness immediately due and payable. There is now due and owing to the Plaintiff, the principal sum of $11,945,525.23 plus interest thereon from February 1, 2021, plus deferred interest, plus default interest, plus accumulated late charges, together with any sums advanced by the Plaintiff on behalf of Defendant.” LINK

$7.2M pre-foreclosure in Greenpoint: Ash Corporate Services, which on October 1, 2021 acquired the loan from Jovia Commercial Lending, formerly known as Nassau Educators Federal Credit Union (NEFCU), filed to foreclose on the loan with an original principal of $7.2 million, secured by Jack Terzi and JTRE Holding’s retail condominium at 897 Manhattan Avenue, unit C1. Terzi bought the unit in May 2018 for $10.05 million, which it financed with a $7.2 million loan from NEFCU at the time of the purchase. According to the complaint, there was a forebearance agreement signed November 18, 2020, then “The Borrowers defaulted upon the Restated Note and Restated Mortgage by failing to make the payment due on the first day February 2021, and on the first day of each an every month thereafter. On or about July 1, 2021, a letter of default was sent by certified mail (the “Default Letter”) to Borrowers, notifying Borrowers of their default under the Loan. A duly executed true and correct copy of the Default Letter is annexed hereto as Exhibit K. By reason of such defaults, the Plaintiff declares the balance of the principal indebtedness immediately due and payable. 28. There is now due and owing to the Plaintiff, the principal sum of $6,982,426.44 with interest thereon from February 1, 2021, plus deferred interest, default interest, accumulated late charges, together with any sums advanced by the Plaintiff on behalf of Defendant.” Ash Corporate Services is located at the offices of the law firm O’Reilly, Marsh & Corteselli P.C., and Michael Liebler,  an associate at the firm, is listed as manager of Ash. LINK