Courts roundup: $11.6M Prime Rok pre-foreclosure; landlords seek $907K from Gallagher’s
Courts roundup for May 19, 2021: There were no bankruptcies above $5 million and one foreclosure above $5 million.
Please note that court filings are the positions of one party and are not necessarily accurate or complete.
$11.6M pre-foreclosure filed on Prime Rok rental: Prime Rok Real Estate, headed by Afshin Hedvat and Daniel Rahmani, bought the 16-unit rental at 1442 Lexington Avenue in Carnegie Hill, in Manhattan, in 2017 for $15.8 million, then refinanced in 2018, borrowing $11.6 million from Ladder Capital which packaged it into a securitized loan. The special servicer for the bondholders of Wells Fargo Commercial Mortgage Trust 2018-C44, filed a pre-foreclosure suit in federal court, in the Southern District of New York.
According to the complaint, “By notice dated June 15, 2020 (the “First Notice of Default”), Interim Holder, through Special Servicer, notified Borrower and Guarantors of, inter alia, Borrower’s failure to remit the Monthly Debt Service Payment on the April 2020 Monthly Payment Date… Upon information and belief, Borrower altered, modified or changed the base rent of the Leases for: (i) Unit 2NW of the Property from $7,000.00 in 2019 to $2,200.00 in 2020; (ii) Unit 2SW of the Property from $6,180.00 in 2019 to $2,900.00 in 2020; (iii) Unit 3NW of the Property from $3,550.00 in 2019 to $3,200.00 in 2020; and (iv) Unit 3SW of the Property from $5,200.00 in 2019 to $2,600.00 in 2020 (collectively, the “Materially Altered Leases”), thereby materially reducing the tenants’ obligations thereunder.”
Rialto Capital Advisors is the special servicer, not the lender. LINK
Gallagher’s Steakhouse owes $907K in rent, landlords claim: The tenant-in-common property owners of 228 West 52nd Street in Midtown Manhattan, are seeking $907,065 in alleged late rent payment from the restaurant Gallagher’s Steakhouse, the tenant. They claim they have not been paid since approximately August 2020, despite Gallagher’s receiving more than $3.32 million in PPP loans according to their analysis of public records. LINK