$73M pre-foreclosures filed covering Soho, Nolita properties

The special servicers for bondholders of securitized debt with an original principal of $73 million filed to foreclose on two loans secured by six Veracity Equities properties in Soho and Nolita, according to the complaints filed in the Southern District of New York.

The larger loan for $41 million covers the buildings 31 Prince Street, 46 Prince Street and 48 Spring Street, (1:22-cv-05855-JGK) while the other loan with an original principal of $32 million covers 26 Prince Street, 29 Prince Street and 137 Thompson Street (1:22-cv-05586-PAE). The larger action was filed on July 8, 2022, and the other was filed June 30, 2022.

Lenders have filed pre-foreclosure actions against at least two other Veracity properties, PincusCo has reported.

In May 2022, Rialto Capital Advisors as special servicer for bondholders of the Morgan Stanley Capital I Trust 2019-L2, filed to foreclose on a loan with an original principal of $21 million and secured by two commercial condominiums at 199 Lafayette Street in Nolita owned by Edmond Li’s Veracity Equities.

In December 2021, Special Servicer LNR Partners filed a suit on behalf of bondholders of 2016-C34 for a loan with an original principal of $24 million. Veracity Equities led by Edmond Li bought the parcel in 2006 for $5.3 million and he developed 30 Kenmare, now occupied by the Nolitan Hotel.