Courts roundup: $10M Park Slope dispute; $16M Flushing foreclosure; $8.9M Two Bridges ground lease

Courts roundup from Friday July 30 to Monday August 2, 2021: There were four commercial foreclosures totaling $23.7 million. Two were below $1 million and two were above.

Court filings are the positions of one party and are not necessarily accurate or complete.

$10M suit over Park Slope portfolio: Debra Cabbad claims she manages a 54 percent stake in the entity Cabbad LLC that owns 12 mixed-use properties in Park Slope once owned by Albert Cabbad, who died in 2014, and other members of the family with less than 50% interest have asserted control over the portfolio and are occupying space without paying rent, obtaining loans and otherwise not managing the assets well, according to the complaint. She is seeking $10 million, a receiver and an accounting, among other relief. The properties are 94 5th Avenue|95 5th Avenue|101 5th Avenue|102 5th Avenue|103 5th Avenue|104 5th Avenue|105 5th Avenue|106 5th Avenue|107 5th Avenue|109 5th Avenue|111 5th Avenue|619 Baltic Street LINK

$16.4M Flushing pre-foreclosure: The original loan given by Columbia Pacific Advisors to Kevin Yu and Eastone Equities secured by 142-26 Roosevelt Avenue in Flushing provided in March 2021 was $15 million. Just two weeks later, the borrowers according to the complaint did not make the April 1, 2021, mortgage payment, or any since then, and the loan was declared in default. By correspondence dated July 2, 2021, counsel for Plaintiff notified Defendant Borrowers and the Guarantor Defendants of the defaults under the Loan Documents, accelerated the Loan balance, and demanded payment of all amounts due…”  LINK

$8.9M ground lease for Two Bridges construction: St. Augustine’s Church in Two Bridges is petitioning to sign a 99-year ground lease valued at $8.9 million for a lot with area of 8,300 square feet with FW Group LLC and Fulcrum Properties LLC. The Developer intends to construct a new mixed-use building, containing approximately 120 residential units of affordable housing catering to income ranges from 50% to 120% area median income (“AMI”) (the “Residential Unit), a community facility unit approximately 4,000 square feet (the “Church Unit”), approximately 10,000 square feet of commercial space on the Premises (the “Commercial Unit” together, the Residential Unit, the Church Unit and the Commercial Unit are the “Project”).”The consideration for the Ground Lease is valued at $8,942,83 (“Consideration”), which is comprised of: a. A $3,300,000 payment upon execution of the Ground Lease; b. A master lease for and option to purchase Community Facility valued at $2,400,000; and c. Ground rent of $100,000 per year with a 3% annual escalator, the net present value of which is estimated to have a net present value of $3,242,834 over the term of the Ground Lease.” The appraised value of the Lease Site (in fee simple) is $8,100,000.00 (“Appraised Value”). Attached hereto as Exhibit E is an appraisal dated May 12, 2020, prepared by Miller Cicero LLC, a duly qualified independent appraiser estimating the Lease Site at the Appraised Amount with additional development rights valued at between 35% ($78.75/sq ft) and 75% ($168.75/sq/ft) of the land rights, the value of which is depêñdent upon a willing and eligible recipient (which in the case of the Lease Site requires a “special permit”).” John V. Waters is principal with NFW  and John Heaney is with Fulcrum. LINK

$6M pre-foreclosure on All Year building: An affiliate of Skybrook Capital made a $6 million loan secured by 61 North 9th Street in Brooklyn in February 2020 with a guaranty from Yoel Goldman which matured on February 1, 2021, and no payment was made to the lender by March 1, so the lender on April 7, 2021, declared the loan in default in a letter to Goldman, according to the complaint. LINK

Forest Hills temple seeks to build 153-unit building: Temple Sinai at 71-11 112th Street in Forest Hills has partnered with Weber Real Estate and seeks to build a 153-unit building including 46 permanently affordable units and a new sanctuary. “This is an action to extinguish certain outdated restrictive covenants preventing the redevelopment of the land and building owned by the Temple. The redevelopment project would not only provide the community with dozens of affordable housing units…” In sum, the purpose of the Association’s Covenants was to preserve the aesthetics and the “religious, cultural, and educational atmosphere” of the neighborhood according to prevailing values and tastes of the early 1960s.” Temple has partnered with Weber Real Estate (the “Developer”) to construct a new facility for the Temple on the Property. Under this arrangement, the Temple would dispose of the Property to the Developer, and the Developer would then demolish the existing building and construct a new 10-story condominium building on the Property, which would include 153 rental apartments along with a space for the Temple on the ground floor that the Temple will own as a condominium unit (see an example rendering of the proposed development) Of those 153 rental apartments, 46 apartments are expected to be permanently affordable units. This provision of affordable housing would be mandatory, and the affordable housing would be permanent, ensuring that these low- to moderate-income apartments remain that way long-term.” LINK