Capstone Equities files $75M pre-foreclosure at SoHo retail owned by Madison Capital

Capstone Equities, which purchased a loan last month with an original principal of $75 million and secured by Madison Capital’s office and retail building at 140 Crosby Street, filed a pre-foreclosure action yesterday in New York State Supreme Court in Manhattan, alleging the loan was in a maturity default.
Court filings represent the position of one party and are not necessarily accurate or complete.

Case LINK
Many New York City owners are being squeezed by higher interest rates and lower rental rate for retail and other asset classes.

Capstone Equities through the entity CE 140 Crosby, LLC bought the note with an original principal of $75 million from Societe Generale and Webster Bank secured by Madison Capital’s office and retail building (O5) at 140 Crosby Street in SoHo, Manhattan.
The deal closed on July 24, 2025 and was recorded on August 1, 2025. The prior lender was Societe Generale and Webster Bank which held debt that had an original loan amount of $75 million. The property has 32,282 square feet of built space according to a PincusCo analysis of city data.
Madison Capital bought the property on May 20, 2016, for $38.8 million. The original loan signatory for Madison Capital  was J. Joseph Jacobson . The note purchase signatory for Capstone Equities  was Avi Kollenscher . To finance the loan purchase, Capstone borrowed $38.6 million from Prime Finance.

Madison Capital filed plans in September 2014 to construct a new office and retail building under job number 121187090. It received its initial temporary certificate of occupancy March 2019.

According to the complaint, “The Loans matured on the Maturity Date [September 5, 2024]  and have not been extended pursuant to the terms and conditions set forth in the Loan Documents, if any.”

Capstone Equities has been active over the last year.

Recent activity for Captstone Equities as company:

• Capstone Equities borrowed $18.5 million from Deutsche Bank for 19 West 31st Street, Penn Plaza, Manhattan on August 08, 2025.

• Vanbarton Group and Korman Communities sold 85 West Broadway and 85 West Broadway, Financial District, Manhattan for $39.8 million to Capstone Equities and Republic Investment Company on August 01, 2025.

• Capstone Equities and Republic Investment Company borrowed $21.5 million from CIBC for 85 West Broadway and 85 West Broadway, Financial District, Manhattan on August 01, 2025.

• Capstone Equities borrowed $70 million from Corebridge Financial for 141 Willoughby Street and 383 Gold Street, Downtown Brooklyn, Brooklyn on July 25, 2025.

• Savanna sold 141 Willoughby Street and 383 Gold Street, Downtown Brooklyn, Brooklyn for $86 million to Capstone Equities and BH3 Management on July 22, 2025.

• Capstone Equities borrowed $30 million from Ellington Management Group for 6 West 32nd Street, Penn Plaza, Manhattan on March 10, 2025.

• Capstone Equities sold 6 West 32nd Street, Penn Plaza, Manhattan for $32 million to Capstone Equities on March 10, 2025.

• Capstone Equities and Leyad borrowed $40 million from One William Street Capital Management for 653 11th Avenue, Hell’s Kitchen, Manhattan on December 12, 2024.

Direct link to Acris document. link