Courts roundup: $22M pre-foreclosure at 62 Madison; MTA sues Eli Zabar for $1.5M

UPDATED: $22M pre-foreclosure filed against 62 Madison Avenue: LNR Partners, the special servicer for a $22 million loan provided to the property owner Mave Hotel Investors LLC secured by the 24,608-square-foot, 11-story corner property, filed to foreclose last week in New York State Supreme Court. LNR alleges the loan was declared in default earlier this year, and a notice that the entire loan was due was sent, dated May 7, 2021. Solly Assa’s Assa Properties bought 62 Madison Avenue in 2013 for $28.45 million, and obtained the $22 million loan at the same time. The loan was later packaged as part of a commercial mortgage-backed security. Solly Assa and Ezak Assa signed as guarantors of the loan as owners of the property in 2013.

An attorney representing Mave Hotel Investors LLC said Solly Assa, Assa Properties and the Assa family are no longer owners of the building, and that Solly Assa’s only relationship now is as a manager.

According to a statement from Richard Migliaccio, “Neither Mr. Assa, Assa Properties Inc., nor his family own the Mave Hotel. Mr. Assa’s relationship to the Mave Hotel, and that of any members of his family, is solely that of management, one of the fee managers of the Hotel. Further, Assa Properties Inc. has no connection with the Hotel. The Mave Hotel is owned by others, both domestic and international investors.”

Migliaccio did not immediately clarify when the Assa family turned over ownership.

Correction: Assa Properties and Solly Assa are no longer owners of this property.

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Direct link to Acris document. link

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

MTA sues Eli Zabar for alleged unpaid Grand Central rent during Covid: The Metropolitan Transportation Authority filed three lawsuits totaling more than $1.5 million against various affiliates of the Upper East Side baker Eli Zabar for non-payment of base rent, percentage rent and other charges, during Covid, for space in Grand Central Terminal. Eli Zabar is only the third Grand Central tenant the MTA has sued in New York County for non-payment of rent since the start of Covid, and it is the largest, according to a PincusCo analysis of court records. The three complaints against Zabar allege his companies stopped paying rent in April 2020 and owe through December 2021. Eli Zabar is related to the family that started the famous West Side deli Zabar’s and Company, but the companies are not affiliated. LINK

EB-5 groups sue HFZ Capital as Witkoff purchases 76 11th Ave: Two groups filed separate lawsuits against Ziel Feldman and HFZ Capital Group on the same day that The Real Deal reported that Access Industries and Witkoff Group acquired control of the project known as XI though a UCC foreclosure auction. The EB-5 investors claim Ziel Feldman and HFZ Capital committed fraud in the management of 76 11th Avenue. LINK