Carter Management acquires title to bankrupt Lenox Hill conversion for $51.4M

UPDATED: Jason Carter’s Carter Management through the entity Lazarus 5, LLC acquired title to a bankrupt property valued at $51.4 million at 305 East 61st Street in Lenox Hill. The former owner was developer Mitchell Adam Marks. The deal closed on September 9, 2020, and was recorded on October 19, 2020. The transaction consists of 1 parcel, including the tax class warehouse or self storage (E7) and containing 14 residential units. The property is 66,237 square feet. The parcel(s) have total development potential of 66,237 square feet.

This was a bankruptcy sale. The last time the property sold was August 15, 2016, when developer Mitchell Adam Marks bought it for $40 million and planned to convert it to condos. He borrowed $30 million from Popular Bank.

Then Popular Bank assigned the $30 million in debt to Maverick Real Estate Partners and in March 2020 Maverick assigned the debt to Jason Carter of Carter Management who borrowed in turn from SKW Funding for that purpose.  The contract date was August 17, 2020.

Greg Corbin and T=the Corbin Group of Rosewood Realty Group and Richard Maltz of Maltz Auctions were the exclusive brokers on the sale.

Over the past five years, there have been 15 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $364,800. Those filings sought to increase the number of residential units by 14 to 14 There were 14 renovation/alteration projects (A2) applied for with a total estimated value of $3,081,500.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
The signatory for the buyer or lender was Jason Carter

UPDATED: The story was updated with the brokers.