5 Arch files to foreclose on $18M loan on Lower East Side properties

5 Arch Funding filed to foreclose on two buildings at 201 and 203 East Broadway with total first mortgage debt of $18.075 million in the Two Bridges neighborhood of the Lower East Side. The buildings are owed by 201 EB Development III, LLC, controlled by Jeffrey Jacobs.

The debt was originated in 2018 and made by 5 Arch Funding, a division of 5 Arches, a company that was acquired by Redwood Trust in 2019.  Jacobs has used modular construction in projects including 193 Henry Street.  The signatory for 5 Arch was Timothy Gannaway.

Jacobs bought the two buildings in 2015 from the United Hebrew Community of New York for $8.5 million. He filed a plan to develop 10 condominium units in 2017, with a total sellout of $27.87 million, but those plans were not accepted, according to records with the New York State Attorney General.