$30M pre-foreclosure filed at two 34th Street retail properties

UPDATED 4:38 a.m., September 3, 2025: LNR Partners as special servicer for a commercial mortgage-backed security, Series 2014-GC19, filed a $30 million pre-foreclosure action against the owner of 136 and 138 West 34th Street, two retail properties in the Garment District neighborhood. The special servicer filed the complaint May 13, 2024, in New York State Supreme Court in Manhattan.

The two properties are owned by the Dushey family’s Jenel Management.

Case LINK

Court filings represent the position of one party and are not necessarily accurate or complete.

Retail has been hit hard and lenders have filed pre-foreclosure actions against a large number of properties in New York City.

The property

The retail building in Penn Plaza has 3,845 square feet of built space and 20,829 square feet of additional air rights for a total buildable of 24,680 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 98 feet deep with a total lot size of 2,468 square feet. The zoning is C6-6 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 $16.7 million.

The retail building in Penn Plaza has 8,570 square feet of built space and 16,116 square feet of additional air rights for a total buildable of 24,680 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 98 feet deep with a total lot size of 2,468 square feet. The zoning is C6-6 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 $15.9 million.

Prior sales and revenue

The 3,845-square-foot property generated revenue of $2.1 million or $556 per square foot, according to the most recent income and expense figures.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has not received any significant violations in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has near average sales volume among other neighborhoods with $297.5 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, Penn Plaza has near average amount of major developments among other neighborhoods and is the 12th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 23 commercial properties representing 1,030,167 square feet of the 1,440,387 square feet. The largest owner is Empire State Realty Trust, followed by Fo 427 Seventh Avenue Llc and then Isj Management. There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 136 West 34 Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a loan which Vornado Realty Trust borrowed $75 million from Landesbank Baden-Wurttemberg secured by the 39,983-square-foot, one-unit mixed-use building (K2) on 433 7th Avenue on April 17, 2024.

Correction: A prior version of this post identified the two properties as 134 and 136 West 34th Street, but in fact the properties are 136 and 138 West 34th Street. In addition, the date the case was filed the court were added.

Direct link to the property’s ACRIS page and link to DOB NOW portal.