Bankruptcy filed for West Village townhouse valued at $8M

A bankruptcy specialist placed the 4,800-square-foot West Village townhouse at 36 West 11th Street into bankruptcy protection, alleging it is worth about $8 million and has about $10 million in secured and unsecured liabilities. The petition was filed April 16, 2024, in the Southern District of the U.S. Bankruptcy Court.

The specialist, David Goldwasser of FIA Capital Partners, includes in the filing an assertion that the senior secured note holder, 36W11 LLC, no longer has a right to claim the debt is secured because that lender filed a money judgment suit in New York State Supreme Court in Manhattan, 655569/2023, seeking repayment of the loan but not seeking a foreclosure.

Court filings represent the position of one party and are not necessarily accurate or complete.

Case 24-10650-lgb LINK

Chapter 11 LINK
Goldwasser affidavit

Goldwasser argues, “It is the Debtor’s legal position that because 36W11 chose an election of remedy to sue the guarantors rather than foreclose on the Property, under prevailing New York law… 36W11 has now waived its rights to foreclose, and its secured claim is therefore at most an unsecured claim in the Debtor’s Chapter 11 case.”

According to bankruptcy records, “The Property is a three-story, mixed-used building with approximately 4,800 square feet and has been vacant for three years. The Debtor believes the Property is currently worth an estimated $8,000,000.”

The Amirian Group and Steven Ostad bought the building in 2021 for $11 million. Amirian sold its interest. David Amirian remains a guarantor on the note.

Bankruptcy expert David Goldwasser, as owner of Saw Mill Road Partners LLC, identified as manager signed on behalf of the petitioner, the entity 36 West 11th Street BH, LLC.

The petition states a disputed loan of $7.425 million and secured liabilities of $2.6 million, and values the property at $8 million. The petition identifies David Amirian and Steve Ostad as co-debtors.

There are three cases pending in state court. In New York County, Copley Monomoy, LLC v. 36 West 11th Street BH LLC et al 162369/2023 and Chris Allam v. 36 West 11th Street BH LLC et al 657094/2021 and in Nassau County, Shaun Moamem v. Steven Ostad et al 602152/2024. Shaun Moamem is identified as a creditor in the bankruptcy petition.

The retainer to the attorney is being paid by Saw Mill Road Partners, LLC.

The property was listed for sale last year asking $11 million.

The surrounding

Within a 400-foot radius of 36 West 11th Street, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months. Of those 11 items, one was for major renovation including a certificate of occupancy change. It was a permit issued on December 30, 2022 for the $1.5 million renovation of 20,184-square-foot residential (R-2) building with 52 residential units at 27 West 11th Street. Of those 11 items, eight were sales above $5 million totaling $100.9 million. The most recent of the eight was Lblb Real Estate 2 LLC which bought the 4,872-square-foot, two-unit mixed-use building (S1) on 50 West 12th Street for $14 million from Melinda Hackett, As Trustee on February 5, 2024. Of those 11 items, two were loans above $5 million totaling $12 million. The most recent of the two was Snir David and Moshe Levy in which borrowed $5 million from East West Bank secured by the 5,845-square-foot, five-unit rental (C2) on 34 West 12th Street on June 29, 2022.

Direct link to the property’s ACRIS page.