Courts roundup: $11M FiDi pre-foreclosure; 2nd RFR pre-foreclosure withdrawn; $25M construction suit; Williamsburg school dispute

The Blackstone Group through its special servicer Rialto Capital Advisors alleges an $11 million Financial District loan originated in 2021 is in a maturity default. The lender filed the complaint January 14, 2025, in Manhattan State Supreme Court.
Case 850034/2025 LINK
Court filings represent the position of one party and are not necessarily accurate or complete.
According to the complaint, “Borrower failed to remit payment to Plaintiff for all amounts due and owing under the Loan Documents on the Maturity Date of August 10, 2024…By Notice of Default dated December 2, 2024 (the “Notice of Default”), Plaintiff, through its counsel, notified Borrower and Guarantor of the Maturity Default.” The properties, the building 52 Fulton Street and a 2,546-square-foot commercial condominium at 50 Fulton Street, are owned by the Goldberg Group.
The mixed-use building 52 Fulton Street in Financial District has 7,824 square feet of built space and 18,256 square feet of additional air rights for a total buildable of 26,080 square feet according to a PincusCo analysis of city data. The parcel has frontage of 31 feet and is 102 feet deep with a total lot size of 2,608 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million. The most recent loan totaled $11 million and was provided by Signature Bank on August 10, 2021.
Direct link to the property’s 52 Fulton Street ACRIS page
Direct link to the property’s 50 Fulton Street ACRIS page

Union Labor Life Insurance Company cancelled a $15 million pre-foreclosure action at RFR Holding’s 670 Sixth Avenue yesterday. This is the second pre-foreclosure case against RFR that was withdrawn this week. The first was a $180 million action at 17 State Street in the Financial District.
Case 850571/2023 LINK
Union Labor filed the $15 million pre-foreclosure action at RFR Holdings’ 5,920-square-foot retail property 670 Sixth Avenue, at the corner of 21st Street, in the Flatiron District in October 2023. RFR Holding is led by Aby Rosen and Michael Fuchs, who are identified in the complaint as obligors under the loan documents. The complaint alleged the borrower did not make the payment due on July 10, 2023.
Direct link to the property’s ACRIS page

Gramercy Square condo board filed a $25 million complaint alleging the developers of the 223-unit conversion project did not construct the property to specifications it said it would in the offering plan. The board is seeking $25 million in damages in the complaint filed January 15, 2024 in Manhattan State Supreme Court. Affiliates of David Bistricer’s Clipper Equity and Meyer Chetrit’s Chetrit Group developed the project, composed of four buildings, 215 East 19th Street, 225 East 19th Street, 220 East 20th Street and 230 East 20th Street.
Case LINK
The complaint does not offer specific instances of construction failures or specific estimates to remediate them. Instead, the complaint makes general statements such as, “The defects at issue are pervasive. They include, but are not limited to, widespread and recurring leaks that cause substantial water infiltration into the Units, common spaces and/or other areas; improperly installed boilers; inadequate fire stopping; cracked window panes inside the Units; missing sections of metal coping at the roof stub parapets; improperly installed wood floorboards, as well as other serious and substantial defects that are not in compliance with legal requirements and/or the Offering Plan.”

A PincusCo review of DOB filings did not turn up major DOB permit applications seeking to remediate construction flaws, though there  was a $28,000 facade violation at 220 East 20th Street, and a small facade job to repair bricks at 225 East 19th Street and boiler and elevator violations in two of the buildings. An AG filing shows 65 of the 223 units were unsold as of spring 2024.
On the tax lot, the most recent condominium plan was filed by CABGRAM DEVELOPER LLC to create 223 residential units in a building at 209 East 19 Street in Gramercy, Manhattan, called Gramercy Square Condominiumthat has a $834.1 million sellout, according to an December 17, 2014 submission to the New York State Attorney General. The principals of the sponsor, CABGRAM DEVELOPER LLC, were David Bistricer and Meyer Chetrit.
Direct link to the property’s ACRIS page

The operators of a Jewish girls school at 31 Division Avenue in Williamsburg, Brooklyn, Beis Chinuch Lebonos Be Ikvei Hatzoin, allege another group of individuals are falsely claiming to be trustees with control of the school. The complaint filed January 15, 2024, in Brooklyn State Supreme Court, seeks a court order blocking the others from assuming control of the property and another in Sullivan County.
Case 501518/2025 LINK

The specialty building in Williamsburg has 22,436 square feet of built space and 36,744 square feet of additional air rights for a total buildable of 59,131 square feet according to a PincusCo analysis of city data. The parcel has frontage of 51 feet and is 242 feet deep with a total lot size of 24,334 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.6 million.
Direct link to the property’s ACRIS page