$60M pre-foreclosure filed at Aurora, A&H, Midtown Equities rental, retail building near Downtown Brooklyn

Wells Fargo filed a $60 million pre-foreclosure action February 12, 2025, in State Supreme Court in Brooklyn alleging a maturity default on a loan secured by the 49,856-square foot retail condo and the 74-unit, 74,678-square-foot residential condo unit at 241 Atlantic Avenue in Boerum Hill, Brooklyn, owned by Aurora Capital Associates, A&H Acquisitions and Midtown Equities. The property is just south of Downtown Brooklyn.
The owners developed the building and borrowed $50 million in 2017 from Wells Fargo and another $10 million in 2018.

Jared Epstein, president of Aurora Capital Associates, said in an email, “Aurora maintains strong relationships with all of our lenders and have a pristine reputation of paying off each and every loan. In this particular situation we are working out an extension which will likely be finalized imminently.”

Court filings represent the position of one party and are not necessarily accurate or complete. Many borrowers are struggling with maturity defaults as interest rates surged in 2022 and values for some assets including retail fell.

The three owners are large, active operators and developers with substantial portfolios in New York City.
Case LINK

Alex Adjmi, a principal of A&H Acquisitions and an active developer, filed the plans for a new building on March 25, 2013. The city issued the initial temporary certificate of occupancy in December 2016.

According to the complaint, “Borrower failed to repay the Loan on or before January 2, 2025 at 4:00 p.m. Eastern Standard Time and accordingly an Event of Default (the “Maturity Default”) had occurred and is continuing under the Loan Documents.”

The surrounding

Within a 400-foot radius of 251 Atlantic Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. One of those two items was a sale which Mark Koplowitz bought the 3,832-square-foot, 11-unit rental (C7) on 218 Atlantic Avenue for $10.6 million from Conway Capital on March 28, 2024. One of those two items was a loan which Maier Jankovits borrowed $19.8 million from Ponce Bank secured by the zero-square-foot development site (V1) on 88 Schermerhorn Street on June 20, 2023.

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