Courts roundup: $21M Bed-Stuy foreclosure; Arbor irked over rival poach, more
Courts roundup for Tuesday, April 13, 2021: There were no New York City real estate bankruptcies. There was one commercial foreclosure, detailed below.
Please note that court filings are the positions of each party and are not necessarily accurate or complete.
$21.3M pre-foreclosure at Joseph Banda, Cheskie Weisz Bed-Stuy rental: The trustees of a securitized $21.33 million loan given to Cheskie Weisz and Joseph Banda in 2018 filed to foreclose. The loan is secured by the 44-unit rental at 35 Claver Place in Bedford-Stuyvesant, Brooklyn. The guarantors, according to the filing, were Banda and Perl Weisz. Cheskie Weisz was the signatory on the 2018 loan but not listed as a guarantor in the suit. According to the complaint, “Borrower failed to pay the Monthly Debt Service Payment Amount on the applicable Payment Date for the months of September, October, November and December 2020 As a result, an Event of Default occurred under the Loan Agreement, and on December 10, 2020, Plaintiff sent to Borrower a Notice of Default (the “Default Notice”).” “The Property consists of a multifamily rental property with 44 residential units consisting of studio, one-, two-, three- and four-bedroom apartments, all of which are market rate units.” The loan was originated in 2018 by Basis Investment Group. LINK
Arbor alleges former employees helping rival DLP: Plaintiff Arbor Realty Trust alleges two long-time former employees who joined a competitor, Florida-based DLP Real Estate Capital, have used confidential information in contravention of employment contracts. Arbor seeks a declaratory judgment that they have breached their employment contracts, and other relief. LINK
Grid Properties alleges Harlem USA retail tenant owes $797K: Grid Properties-plaintiff-landlord alleges the retail tenant, a corporation operating as a Buffalo Wild Wings Grill & Bar, owes back rent and has abandoned the property. The alleged back rent predates Covid. LINK
Triangle Equities alleges Flatbush retail tenant owes $474K: Plaintiff-landlord Triangle Equities alleges the Applebee’s franchise-tenant of a 6,500-square-foot ground-floor condominium unit in the Triangle Junction Shopping Center at 2201 Nostrand Avenue in Flatbush, Brooklyn, is in default on its retail lease. According to the complaint, “During the period from December 2019 through April 2021, Defendant has failed to pay fixed rent and additional rent for the Premises in the amount of $474,174…” LINK