Billionaire lender hits Moin Development with $110M pre-foreclosure suit in NoMad

Feoh Capital, a family office affiliated with billionaire shipping and real estate magnate Eyal Ofer, filed a suit Friday seeking to foreclose on the $110 million loan given to David Moinian’s Moin Development and secured by the Mondrian Park Avenue hotel at 444 Park Avenue South in NoMad, according to the court papers. The suit was not a surprise, as the loan was sold twice in the past year and Moinian sued Feoh in July.

Feoh Capital bought the loan on June 2021 from an affiliate of Arbor Realty Trust. The original loan was provided by JPMorgan Chase Bank.

Moinian sued Feoh in July claiming that the lender was not abiding by an agreement Arbor struck with Moinian. That case remains ongoing. Feoh denied the allegations in that case in its response, saying, among other claims, that, “Feoh at all times acted in good faith, and did not breach any contractual obligations to Borrowers.”

Feoh said, in its new pre-foreclosure suit, that “By letter dated July 1, 2021, Feoh, in its capacity as Administrative Agent (as defined herein), served upon Borrower a Notice of Expiration of Forbearance Period and Continuing Events of Default.”

The 20-story property with 190 rooms obtained a $110 first mortgage million loan in December 2019. The loan was divided into several pieces, with JPMorgan Chase owning the $60 million tranche, and Arbor Realty Trust owning a $35 million and a $15 million piece. There was also a separate personal note from David Moinian for $7.6 million. Covid negatively impacted the hotel market, the Moinian complaint said.