Courts roundup: 2 pre-foreclosures totaling $6.6M, 1 bankruptcy for $3M

JPMorgan Chase files $5M pre-foreclosure in Chelsea: Lender JPMorgan Chase filed a $5 million pre-foreclosure action against the owners of 144 Eighth Avenue in Chelsea, Manhattan. The building is a three-story walkup with five residential units and a total of 7,662 square feet on a corner lot with 26 feet along Eighth Avenue and 100 feet facing 17th Street. The owner entity is Chelsea Business Properties, LLC controlled by Kenneth Choi and June Shin.
The original loan of $5 million was given on June 2, 2017 and has a maturity date of July 1, 2030. According to the complaint, “The Loan is in default due to Borrower’s failure to pay the required amounts due for the months of February 2023 to present.” The total now due is $4,769,678.46. LINK

$3M bankruptcy in Astoria: An owner of a two-story, 2,440-square-foot commercial property at 8-48 Astoria Boulevard in Astoria, through the entity Cojam Construction, filed a chapter 11 bankruptcy petition. The principal of the owner entity, James Cortazar, is fighting his onetime business partner Victor Cortazar over control of the asset.

The petition values the property at $3 million. Vincent Cortazar holds a $2.5 million judgment lien that is being appealed. Vincent sued James in Queens State Supreme Court in 2017 700493/2017  alleging the two bought the building in 1998 as 50-50 owners, and Victor managed it until 2010, then in March 2011 James took over and in August 2016 put the property in Cojam’s name and has not shared rental proceeds. In February 2023 the judge ordered a receiver to manage the property. LINK

JPMorgan Chase files $1.6M pre-foreclosure in Sheepshead Bay, owner died: Lender JPMorgan Chase filed a $1.6 million pre-foreclosure action against the owners of 1618 Sheepshead Bay Road in Sheepshead Bay, Brooklyn. The property is a two-story retail (K4) building.

In 2018, Tae Soo Kang, who died two years later at the age of 87, borrowed $1.6 million.
According to the filing, “JPMC asserts this action to foreclose a commercial mortgage securing a loan for the original principal amount of $1,600,000 that has been in default since February 2020. The subject real estate is commonly known as 1618 Sheepshead Bay Rd… and consists of a commercial retail property…. Borrower was notified of his default and acceleration of the mortgage loan in February 2020 and has failed to pay the amounts due to cure the default. On information and belief, Borrower died on or about April 19, 2020. Kang’s wife and heir at law, Dong Won Kang, died  on or about May 30, 2020.”

The current total amount due is $2,112,736.50. LINK

Direct link to Acris document. link