ACORE files $60M pre-foreclosure at Beacon Capital, Georgetown Co.’s Hell’s Kitchen lab project
707 11th Avenue (Credit - Cyclomedia)
ACORE Capital acting as administrative agent for a group of lenders, filed a $60 million pre-foreclosure action on April 28, 2026, in Manhattan State Supreme Court against the Georgetown Company and Beacon Capital Partners, through the entities BCAL 707 Property LLC and BCAL II, LLC, related to their commercial properties at 707 11th Avenue and 615 West 50th Street, in Hell’s Kitchen, in Manhattan.
Case LINK
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The two buildings were previously identified as a prime site for life science redevelopment. The Georgetown Company and Beacon Capital Partners paid SL Green Realty $95 million in February 2022 for the six-story 707 11th Avenue and the adjacent three-story 615 West 50th Street. The buyers secured the original financing from Delphi CRE Funding LLC. ACORE Capital served as the administrative agent for the loan at its inception. The debt consists of two components: a Promissory Note A-1 for $43.5 million and a Promissory Note B-1 for $16.5 million.
In March 2023, the new owners filed plans to demolish both buildings (123915816 and 123915807) and also pre-filed plans that month for a seven-story, 138,067-square-foot laboratory and office building covering both tax lots with a building footprint of 26,585 square feet, under job number M00841581. That plan never progressed beyond pre-filing, but was modified on April 1, 2026.
According to the complaint, the loan was originally scheduled to mature on March 8, 2024. Following several extensions requested by the borrower and granted by ACORE, the final maturity date was moved to November 10, 2025. The plaintiff alleges the borrower failed to pay the outstanding principal balance, accrued interest, and other fees by that deadline, triggering a maturity default. On December 3, 2025, ACORE issued a formal notice of default to the borrower, stating that the full debt remained unpaid.
ACORE is now seeking to foreclose on the property and is demanding a judgment to sell the site to satisfy the debt. The plaintiff also reserves the right to seek a deficiency judgment against the borrower and the guarantor, BCAL II, LLC, to the extent that the proceeds from a foreclosure sale do not cover the total obligations. As of the filing date, the plaintiff claims the outstanding principal remains $60 million, plus default interest, which is calculated at 5% above the standard interest rate defined in the loan documents.
The 707 11th Avenue property is a notable asset in the West Side’s emerging life science corridor. The Georgetown Company, led by CEO Adam Flatto, and Beacon Capital Partners, are prominent institutional owners with significant holdings in New York City.
The filing follows a broader trend of distress in the Manhattan commercial real estate market, particularly for redevelopment projects facing elevated interest rates and shifting demand for specialized office space. ACORE has requested the appointment of a receiver to manage the property during the pendency of the foreclosure proceedings to protect the value of the collateral.
The property
The office building at 707 11th Avenue in Hell’s Kitchen has 103,788 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 175 feet deep with a total lot size of 17,573 square feet. The zoning is M2-4 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $20.9 million. The most recent loan totaled $60 million and was provided by ACORE Capital on February 22, 2022.
Prior sales, articles and revenue
This property was sold with another property by SL Green Realty for $95 million to Beacon Capital Partners|Georgetown Company on February 22, 2022.
The 103,788-square-foot property generated revenue of $4.6 million or $44 per square foot, according to the most recent income and expense figures.
Violations and lawsuits
According to city public data, the property has received $50 in OATH penalties in the last year.
There were no lawsuits or bankruptcies filed against the property for the past 24 months.
The neighborhood
In Hell’s Kitchen, The bulk, or 39 percent of the 40.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Hell’s Kitchen has near average amount of major developments among other neighborhoods and is the 26th highest in Manhattan. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of three of the nine commercial properties representing 265,654 square feet of the 404,579 square feet. The two identified owners are Beacon Capital Partners and Gary Spindler. There are no active new building construction projects on this tax block.
The owner
The PincusCo database currently indicates that Georgetown Company owned at least three commercial properties in New York City with 129,906 square feet and a city-determined market value of $36.5 million. (Market value is typically about 50% of actual value.) The portfolio has $30 million in debt, borrowed from JPMorgan Chase. Within the portfolio, the bulk, or 94 percent of the 129,906 square feet of built space are office properties, with industrial properties next occupying 6 percent of the space. They are all located in Manhattan.
The surrounding
Within a 400-foot radius of 709 11 Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months. Of those two items, two were loans above $5 million totaling $58.8 million. The most recent of the two was 622 West 51st Street Holdings, LLC in which borrowed $30 million from Extra Space Storage Lp secured by the 143,449-square-foot industrial (E7) on 622 West 51st Street on December 19, 2025.
Direct link to the property’s ACRIS page and link to DOB NOW portal.