Courts: $34.9M Brooklyn condo pre-foreclosure; $11M Chinatown suit; Extell sues restaurant

$34.9M condo pre-foreclosure at Louis Greco Clinton Hill project: Lender Silver Point Capital filed a pre-foreclosure action alleging a loan with outstanding debt of $34.9 million and secured by Louis Greco’s project at 475 Washington Avenue in Clinton Hill, Brooklyn, was in default.
Court filings represent the position of one party and are not necessarily accurate or complete.
Case LINK
This is the second time the lender has filed a pre-foreclosure action on this property this month. The prior action was not fully served and was discontinued and followed with this action.
Greco of Second Development Services, who also uses the name Louis V. Greco Jr., borrowed $40 million from Silver Point Capital in 2022 as a condo inventory loan.

On the tax lot, the most recent condominium plan was filed by 475 Wash Owner LLC to create 60 residential units in a building at 475 Washington Avenue in Clinton Hill, Brooklyn, called 475 Washington Avenue Condominium that has a $69 million sellout, according to an February 5, 2018 submission to the New York State Attorney General. The principals of the sponsor, 475 WASH OWNER LLC, were Barry Leon and Jesse Leon.

According to the complaint, “As a result of the foregoing, there is now due and owing to Plaintiff, pursuant to the Senior Loan Documents, the unpaid principal amount of $32,472,724.19, On or about February 7, 2023, Borrower, SPF, Individual Guarantors, Entity Guarantor and non-parties 475 Wash Mezz LLC and Downbrook Partners LLC6 entered into a Loan Workout Agreement… The Workout Agreement, inter alia, established a Termination Event as defined in the Workout Agreement and defined the term “Termination Date” to mean the earlier of (i) such date on which a Termination Event occurs and (ii) December 29, 2023. … The Second Amended Workout Agreement, inter alia, redefined the term “Termination Date” to mean the earlier of (i) such date on which a Termination Event occurs and (ii) December 31, 2024… “Borrower breached the terms of the Senior Loan and Building Loan [by]…failing to remit the outstanding amounts due under the Senior Loan and Building Loan by the Initial Maturity Date… failing to complete the specified Work by the applicable Completion Date…failing to pay taxes…by virtue of the Mechanics Liens.”

Another Greco project in Dumbo, at 63 Columbia Street, is likely headed to a foreclosure auction, since a bankruptcy judge recently lifted the stay. On the tax lot, the most recent condominium plan was filed by SDS COLCON OWNER LLC to create 10 residential units in a building at 63 Columbia Street in Columbia Waterfront, Brooklyn, called 63 Columbia Street Condominiumthat has a $29 million sellout, according to an January 23, 2020 submission to the New York State Attorney General. The principal of the sponsor, SDS COLCON OWNER LLC, was Louis Greco, Jr.
Direct link to the property’s ACRIS page

Affordable housing lender alleges files $11.3M pre-foreclosure in Chinatown: The venture of Community Preservation Corporation, Neighborhood Restore HDFC and Related Fund Management filed an $11.3 million pre-foreclosure action alleging the loan secured by the 30-unit rental at 120 Mott Street in Chinatown was in default.

According to the complaint, “due and payable in full on October 10, 2028 (the “Maturity Date”). Borrower defaulted under the terms of the Loan Documents by failing to repay the Loan starting with the payment due for September 10, 2023 and continuing thereafter unabated…According to Plaintiff’s records, the last payment made by the Borrower (or Guarantors) of any kind was for the payment due for August 10, 2023.” The total debt as of filing is $16,840,443. The guarantors were identified as
Jie Wang, Chun Er Pan and Zhi Pan.
The walkup building with 30 residential units in Chinatown has 21,196 square feet of built space and 5,673 square feet of additional air rights for a total buildable of 26,891 square feet according to a PincusCo analysis of city data. The parcel has frontage of 45 feet and is 100 feet deep with a total lot size of 4,467 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $4.3 million.
Direct link to the property’s ACRIS page

Extell sues restaurant in Lenox Hill building purchased as part of $103M deal: Extell Development through the entity East 60th Townhouses LLC filed a lawsuit yesterday alleging Merchant Hospitality’s Philippe Chow NYC restaurant refuses to vacate its location at 33-35 East 60th Street, despite an alleged demolition clause allowing it to be expelled before the lease is up. The building is one of three that Extell purchased from the Goldman family’s Solil Management for $103.3 million to add to its high rise project at 655 Madison Avenue. Extell is seeking $390,266 in back rent and addition fees up to four times the rent if it won’t leave.
Court filings represent the position of one party and are not necessarily accurate or complete.
Case LINK
According to the complaint, there was a “Lease Modification Agreement, dated July 8, 2021, between Original Landlord, as landlord, and Tenant, as tenant collectively, the “Lease”), for the premises located at 33-35 East 60th Street, Basement, Ground Floor, Second Floor and Storage Space on the Third Floor (3R)… The Lease was set to expire on or about May 31, 2027…. LT320549-24/NY… On or about December 19, 2024, Original Landlord served on Tenant a Notice of Election to Terminate Lease (“Notice”), pursuant to paragraph 71 of the Lease, due to the demolition of the Building in which the Demised Premises is located. Pursuant to the Notice, the Lease terminated effective March 24, 2025 (“Termination Date”). To date, Tenant has not surrendered possession.”