Ashkenazy sues to maintain hold of Surrey Hotel furniture

Ben Ashkenazy’s Ashkenazy Acquisition filed a lawsuit in New York State Supreme Court October 5 seeking a ruling that the furniture and other personal property in the Surrey Hotel is subject to Ashkenazy’s lien even as the leasehold was recently terminated while in bankruptcy.

Ashkenazy held a $45 million loan secured by Denihan Hospitality Group’s leasehold on the 109-room Surrey Hotel at 20 East 76th Street. The property was placed in involuntary bankruptcy April 26, 2020, after the ground lessor which operated the hotel, in approximately January 2018, defaulted on the loan.

The state court filings are here at 654971/2020.

The fee is owned by partners affiliated with the Kaufman Organization. The ground lease was terminated in August, and Ashkenazy agreed with that action, but maintained he had a right to the personal property in the hotel such as beds and other furniture.

So this move was not unexpected, as Ashkenazy filed on August 13 in the bankruptcy court that the lien should remain over this property.

Ashkenazy “is commencing this action for a declaratory judgment seeking a judicial ruling that the Personalty (the personal property) at the Hotel was, and continues to remain, subject to Plaintiff’s lien and security interest,” the new state court filing says.

Correction: A prior version of this post incorrectly identified the address.