6 pre-foreclosures filed for $51.7M, most filings in at least a year
Lenders filed six pre-foreclosure actions to recover loans with a total original principal of $51.7 million yesterday, the highest number of commercial foreclosure filings in at least a year, according to a PincusCo review of foreclosure data. The loans were in Manhattan and Brooklyn.
The highest value loan was $24.8 million lent to Mendel Gold secured by seven parcels in Brooklyn. The next highest was $15 million in debt provided to Shimshon Mandel and secured by two properties in Greenpoint.
The four loans greater than $1 million are summarized here:
$24.8 million loan: Mendel Gold borrowed $24.8 million from Cantor Commercial in November 2019, secured by seven Brooklyn parcels including 467 Central Avenue. The loan was securitized into 2019-CF3. According to the loan documents, the “Borrower failed to pay the monthly installment of interest due on April 1, 2020, an Event of Default. Accordingly, the Loan is and has been bearing interest at the Default Interest Rate since then. Plaintiff provided written notice of Borrower’s default to Borrower and Guarantor by letter dated June 11, 2020 (the “Default Letter”). A true and correct copy of the Default Letter is annexed hereto as Exhibit K. 34. Plaintiff subsequently accelerated the Loan pursuant to written notice to Borrower by letter dated October 18, 2021.” Marko Matic, asset resolution consultant of Midland Loan Servicer, the special servicer of the loan. LINK
$15 million combined loans: The first is a 10-unit rental building at 293 McGuinness Boulevard with 8,724 square feet completed in approximately 2009. The debt is from Wells Fargo Series 2018-SB5, and the borrower principal is Shimshon Mandel. LINK
The second is a 10-unit rental building with 11,532 square feet at 287 McGuinness Boulevard, also completed in approximately 2009. The debt is from Wells Fargo Series 2018-SB5, and the borrower principal is Shimshon Mandel. LINK
$11 million loan: JPMorgan Chase Bank provided the $11 million loan. The buildings 73 East Third Street and 75 East Third Street in the East Village have a total of 46 apartments. The owners in Housing Preservation and Development are William Harra and Giovanni R. Gallizio. Giovanni R. Gallizio is the signatory on the loans. LINK