Courts roundup: $170M hotel auction ordered, $6M auction scheduled, $5.8M auction scheduled

Judge backs Yellowstone’s $170M hotel foreclosure: State Supreme Court Justice Andrew Borrok on January 22, 2024, sided with lender Yellowstone Real Estate Investments, affirming a motion of summary judgment that advances the lender’s effort to take control of the shuttered 697-unit Maxwell Hotel, at 541 Lexington Avenue, in Midtown East, Manhattan. However, even with the summary judgment in Yellowstone’s favor, there are still avenues that would delay or block Yellowstone from gaining control. The defendants in the foreclosure action are affiliates of Dune Real Estate Partners and Aynsley Capital, according to court records.

Case 653461/2022 LINK

Capstone and Highgate purchased the hotel in May 2018 based on a December 2017 contract, for $190 million, and obtained $170 million in senior financing from LoanCore at the time, yielding a relatively high 89.5 percent loan to value percentage. Joshua Zamir is the founder of Capstone Equities. The Real Deal reported in 2018 that Highgate was a partner on this property. Capstone and Highgate are not identified in the foreclosure complaint, and don’t appear to be involved in this action.

In March 2022, Yellowstone Real Estate Investments through the entity YS 541 Lexington Holdings LLC bought a note with an original principal of $170 million from LoanCore Capital secured by the hotel. That deal closed on March 9, 2022 and was recorded on April 5, 2022. The prior lender was LoanCore Capital which held debt that had an original loan amount of $170 million.

Yellowstone Real Estate Investments through the entity YS 541 Lexington Holdings LLC borrowed up to $90 million from Fortress Investment Group through the entity Fortress Credit Corp., secured by Yellowstone’s $170 million note, which is in turn secured by Capstone Equities 697-unit Maxwell Hotel at 541 Lexington Avenue, in Midtown East, Manhattan. The participation deal closed January 19, 2023, and was recorded on January 25, 2023.

Direct link to the property’s ACRIS page and link to DOB NOW portal.

Auction set for Greenpoint rental with $6M lien: The Greenpoint rental building at 68 North Henry Street, also known as 573 Meeker Street, with a $6 million judgment lien, 10,212 square feet and seven residential units is scheduled to be sold at auction on February 22, 2024 at the Kings County Supreme Court building, according to a notice of sale filed yesterday. The lender, Hirshmark Capital, filed a $4.8 million pre-foreclosure action on March 21, 2023. The parcel has two buildings with frontage of 59 feet and is 70 feet deep with a total lot size of 4,164 square feet. 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 $1.8 million.
Case 508678/2023 LINK
Direct link to the property’s ACRIS page

Auction set for Greenpoint commercial with $5.8M lien: The 10,000-square-foot industrial building at 58 Dobbin Street in Greenpoint, Brooklyn, with a judgment lien of $5.8 million has an auction date set for March 14, 2024, according to a notice of sale filed yesterday. The auction is set to take place at the Kings County Supreme Court building.

The property was involved in this foreclosure action and one bankruptcy (1-23-42938-ess) over the past four years. The bankruptcy case, filed August 16, 2023, by Henrick Weiss, was dismissed January 5, 2024.

Direct link to the property’s ACRIS page