Courts roundup: $10.3M foreclosure ordered, Hirshmark files $3.8M pre-foreclosure, Carnegie House suit tossed

Judge orders sale of $10.3M bankrupt new development in Greenpoint: Brooklyn State Supreme Court Judge Lawrence Knipel signed an order November 3, 2023, that was filed yesterday, ordering the sale of the four-unit new construction property at 135 Bayard Street in Greenpoint, with a judgment lien as of August 2023 of $10.3 million. The debt is held by Stormfield Capital Management, which in 2020 filed to foreclose on this and other properties. Rafi Manor, of M Development, was the original developer. In October 2023, the owner of the property filed for Chapter 11 bankruptcy protection, but the case was converted to a Chapter 7, which is for liquidation.

The sale has not yet been calendared, but is set to take place at the Brooklyn Courthouse.

Hirshmark files $3.8M pre-foreclosure at Arch Companies conversion: Hirshmark Capital filed a pre-foreclosure action against an Arch Companies entity that owns 146 East 89th Street in Carnegie Hill. Arch Companies in 2022 bought the building for $5.8 million. Hirshmark Capital bought the debt with an original principal of $3.8 million, November 17, 2023. Arch Companies is embroiled in a leadership dispute between founders Jared Chassen and Jeffrey Simpson.
Last year, Jeffrey Simpson submitted a major alteration application for a renovation of the five-unit residential (RES) building at 146 East 89th Street in Carnegie Hill, Manhattan. The plan was filed with the New York City Department of Buildings on August 10, 2023 under job number M00915905. It call for a rehab of the six-story building. The project is described in the filing as: change to single-family home construct partitions ceilings doors. Doris Shen of Hirshmark Capital signed as asset manager.

Direct link to the property’s ACRIS page and link to DOB NOW portal.

Judge dismisses Carnegie House co-op tenant case against Werner, Cammeby’s: State Supreme Court Judge Arthur Engoron on January 11, 2024, dismissed the remaining causes of action against David Werner and Cammeby’s International Group’s fee ownership entity as well as the board of the 324-unit Carnegie House cooperative at 100 West 57th Street, in a case filed in 2022. The case was not seen as a serious threat to the fee position that David Werner and Cammeby’s International Group bought for a reported $286 million in 2014. Last year, Michael Dell’s MSD Partners made an approximately $100 million equity investment in the fee, as PincusCo reported at the time. The ground lease is set to expire in March 14, 2025, and is expected to rise to approximately $24 million, according to the tenant who filed the complaint. Case 154931/2022 LINK