Blackstone files two pre-foreclosures: $10.5M at RFR retail, $7M at Hell’s Kitchen rentals

Blackstone Group file two pre-foreclosure actions last week, the larger for a $10.5 million loan secured by RFR Holding’s retail and garage units at 404 East 76th Street in Lenox Hill, and the other for a $7 million loan secured by a real estate investor’s Hell’s Kitchen rental buildings at 334 and 336 West 46th Street with a total of 12 residential units over retail. Both loans were originally originated by Signature Bank, and later Blackstone purchased a portion of those loans after Signature Bank failed.
$10.5M 850421/2024 case LINK
$7M 850419/2024 case LINK

In the larger case, Blackstone Group on November 7, 2024, through the entity SIG CRE 2023 Venture LLC, alleged that $10.5 million in loans secured by the retail, office and garage condominium units RFR Holding owns in the RFR-developed Impala condo building at 404 East 76th Street, as well as a neighboring building, 1460 First Avenue, were in default. The Manhattan Schoolhouse preschool occupies a portion of the retail, according to the daycare’s website.

The RFR owner entity is Impala Retail Owner, LLC. According to the complaint, “Borrower failed to timely pay the monthly installments required under the Note beginning on April 10, 2023 and continuing on each monthly payment date thereafter… On or about October 5, 2019, Borrower duly executed, acknowledged and delivered to Signature Bank (“Original Lender”) an Amended and Restated Mortgage Note (the “Note”) for the purpose of evidencing an indebtedness in the amount of $10,500,000… the original principal amount of $10,810,000 made by Impala Retail Owner, LLC to Deutsche Bank Mortgage Capital, L.L.C. dated as of April 4, 2005…”
The retail condo unit, 1002, is 5,652 square feet, the professional office condo unit 1004 is 2,835 square feet and the garage unit 1001 is 11,938 square feet. 1060 First Avenue is a 10-unit walkup over retail, with a total of 6,916 square feet.
Direct link to the property’s 1460 First Avenue ACRIS page and Impala retail ACRIS page.

In the smaller pre-foreclosure filing, at 334 and 336 West 46th Street, Blackstone on November 6, 2024, through the entity SIG CRE 2023 Venture LLC, alleged the property’s guarantor Roey Hayon has defaulted on loan payments. The owner entity is REF 46 Street LLC.
According to the complaint, “An Event of Default occurred (as defined by the terms of the Mortgage) due to the Borrower’s failure to make the monthly payment of principal and interest due for April 10, 2023, and each month thereafter… as of November 6, 2024, the principal amount of $6,823,300.01, plus unpaid interest at the contract and default rate, plus attorneys’ fees and costs…”

The mixed-use building at 334 West 46th Street with six residential units in Hell’s Kitchen has 5,166 square feet of built space and 6,934 square feet of additional air rights for a total buildable of 12,100 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,010 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.7 million. The most recent loan totaled $7 million and was provided by Signature Bank on November 3, 2021.

The walkup building at 336 West 46th Street with 6 residential units in Hell’s Kitchen has 4,133 square feet of built space and 20,059 square feet of additional air rights for a total buildable of 24,200 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,020 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million. The most recent loan totaled $7 million and was provided by Signature Bank on November 3, 2021.

Direct link to the property’s ACRIS page.