Courts roundup: $12.6M Sugar Hill pre-foreclosure, $8.7M Gowanus dispute, more

$12.6M pre-foreclosure filed against 5 Sugar Hill Harlem rentals: The special servicer for bondholders of original 2018 loans totaling $12.6 million filed four pre-foreclosure actions against Sugar Hill Capital Partners and its top executives who were partial guarantors on Friday. The filings allege Sugar Hill’s entity’s stopped making loan payments on the properties between July and October 2022. The properties are 121 West 116th Street, 301 West 113th Street, 300 West 114th Street, 2107 Eighth Avenue and 372 West 127th Street. Another Sugar Hill lender, Signature Bank, filed two pre-foreclosure actions in November for loans with a total original principal of $32.8 million. Sugar Hill has not filed response papers in either of those actions. Sugar Hill has sold properties in 16 transactions over the past year totaling $58.5 million, with buyers including Moshe Greenzweig, Derby Copeland Capital, Namdar Realty Group and others. LINK

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

JV partners seek $8.7M, allege funding issues at Gowanus condo project: Two individuals who own a stake in 136 14th Street in Gowanus, Brooklyn, allege developers induced them to contribute their property for a condominium project, but the developers did not hold up their end of the agreement. According to the complaint “[The developer]represented that if Ram John Khan and Merley Khan contributed the Property to a joint venture, [the developer] or an entity controlled by him would advance the funds necessary to develop a condominium project and that each party would have a one-half interest in the project…” The complaint alleges AD Sadot (the developer’s entity) was to provide $2.6 million, plus additional sums at milestones. “Defendant AD Sadot failed to comply with its obligations for capital contributions under the terms and conditions of the Operating Agreement…” PincusCo data shows that on the tax lot, the most recent condominium plan was filed by SHERIFF DEVELOPMENT HOLDINGS LLC to create 10 residential units in a building at 136 14th Street in Gowanus, Brooklyn, called One Three Six Condominium that has a $11.5 million sellout, according to an November 8, 2021 submission to the New York State Attorney General. The principal of the sponsor, SHERIFF DEVELOPMENT HOLDINGS LLC, was Roei Paz. Martin Walf submitted a new building construction project for a 10-unit, 10,439 square-foot residential (R-2) building at 136 14 Street. The plan was filed on November 16, 2018 and was permitted on April 8, 2021. It calls for the construction of a 55-foot tall, six-story building and was filed with the New York City Department of Buildings under job number 322058562. LINK

30-unit Chelsea condo sues building developers: The condo board of the Graydon Chelsea at 128 West 23rd Street, a building with 30 residential units and one commercial unit, accuses the condo’s developers including Pan Brothers Associates of a series of non-specific faults, totaling $4 million. The developers completed the building, that had an initial condo sellout price of $66 million, in 2021.  LINK