Courts roundup: $11.25M Hap pre-foreclosure; All Year says $3.2M Goldman loan is void

Courts roundup for July 7 and 8: There was one bankruptcy of $4 million and one pre-foreclosure above $1 million.

Please note court filings are the position of one party and are not necessarily accurate or complete.

Prime Finance files $11.25M pre-foreclosure at Hap Investments East Harlem rental: Lender Prime Finance Partners alleges that Hap Investments entity 2338 Second Avenue Mazal, LLC has failed to make loan payments for the month of June 2021, and has also not completed construction work, among other alleged events of default. The original loan principal from 2019 is $11.25 million secured by 300 East 120th Street, also known as 2338 Second Avenue in East Harlem.
According to the complaint, “Borrower failed to make the monthly Debt Service Payment for the month of June 2021, which failure constitutes an Event of Default under the Loan Documents. On June 10, 2021, Lender sent written notice to Borrower of Borrower’s defaults under the Loan Documents, and requested cure of such defaults. A true and correct copy of the June 10, 2021, letter is attached hereto as Exhibit H… Borrower has failed to complete the Renovation Work in a timely, lien-free and workmanlike manner and is thus in breach of Sections 3.6(a), 5.8 and 5.31 of the Loan Agreement. Borrower has also failed to provide Lender with (1) audited financials for calendar year 2020 as required by Section 6.3.2 of the Loan Agreement, (2) balance sheets for calendar months October 2020 and March and April 2021, and (3) aged receivable reports for calendar months September 2020 through April 2021 and is thus in breach of Sections 6.3.2 and 6.3.3 of the Loan Agreement.” LINK

All Year seeks to void $3.2M Yoel Goldman confession of judgment: The company All Year Holdings, no longer managed by founder Yoel Goldman, is claiming two loans totaling $2 million that Goldman allegedly obtained in 2018 are void because they included a monthly interest rate of 3%, which the suit claims is criminally usurious and therefore the loans and the judgments of confession are void. The suit does not address how the loans should be repaid, it narrowly seeks to void the judgments of confession signed by Goldman in 2018 and entered in June 2021. The defendant in the case is an attorney who entered the judgment on behalf of the lenders. LINK

$4M Borough Park 2-family bankruptcy: The entity Fifteen Twenty Six Fifty Second LLC, which purports to own 1526 52nd Street, Brooklyn, a two-family building in Borough Park, filed for bankruptcy. This is a single asset real estate chapter 11 bankruptcy precipitated by a dispute over ownership of the property between two married couples, the Lefkowitz and the Ashkenazi, who are involved in an active Brooklyn Supreme Court case initiated in 2018. Estimated assets are $4.7 million and liabilities are $1.1 million. The signatory was Isaac Lefkowitz. The property is valued at $4 million and there is an additional $700,000 claim as a credit against two alleged holdover tenants, who are the other married couple. The debts total $1.1 million to Arvest Central Mortgage Company. There is an active Brooklyn court cases, disputing ownership interests in the property 515379/2018. The bankruptcy filing number in the Eastern District of New York on Pacer is 21-22397-rdd.