$23.5M pre-foreclosure filed on Bond Collective-leased property in Bushwick: Rialto Capital Advisors as special servicer for RSS WFCM2019-C50 – NY 8BT, LLC, filed the suit against a tenant-in-common owners of 839 Broadway in Bushwick, Brooklyn, including Elliot Horowitz and Elie Deitsch. The property is a 46,228-square-foot retail and office building in Bushwick, Brooklyn.
Bond Collective, the coworking company led by Elie Deitsch, was the largest tenant in the building, through its affiliate 839 Broadway TIC F LLC, and “was expected to gradually increase its ownership interest to 100% of the Mortgaged Property through annual payments over six years totaling $3,750,000,” according to the 2019 securitized loan prospectus.
“Bond Collective (39,913 square feet; 86.3% of net rentable area; 89.9% of underwritten base rent; 4/7/2034 lease expiration) – Bond Collective is a luxury shared office provider that curates boutique work environments. Bond Collective is based in New York City and has six locations throughout Manhattan, Brooklyn, and Philadelphia. Bond Collective executed a 15-year lease at $45.00 PSF (on a triple-net basis) on the office space and $14.16 per square foot (on a triple-net basis) on the garage space, on April 8, 2019.”
The property was appraised at $32. 5million in 2019. The TIC owners bought it for $11.5 million in 2015, then rehabilitated the property in 2019. The TIC investors in April 2019 borrowed $23.5 million in a 10-year loan originated Argentic Real Estate Finance. The debt was securitized through the Wells Fargo Commercial Mortgage Trust 2019-C50. That trust on February 15, 2022, assigned the debt to the plaintiff. The plaintiff alleges the borrowers defaulted by failing to make loan payments starting in April 2021 and through the date of the filing. The lender sent a notice of acceleration on March 21, 2022, demanding the loan be paid in full. The ownership stakes at the time of the loan were 839 Broadway TIC A (DG 839 Broadway), 39.3%, 839 Broadway TIC B (DG 1076 Dean LLC), 20.7%, 839 Broadway TIC C (839 ML LLC), 10.04%; 839 Broadway TIC D (839 LG LLC), 6.09%; 839 Broadway TIC E (839 Properties LLC), 17.62%; Deitsch’s 839 Broadway TIC F (839 LG LLC), 6.25%. LINK
Former HFZ Capital exec Nir Meir files bankruptcy on Hamptons LLC entity: Nir Meir filed a bankruptcy petition in Delaware for two entities, EAM 40 Meadow Lane LLC, EZL 40 Meadow Lane LLC, related to the ownership of 40 Meadow Lane in Southampton, Long Island. The property sold for $43 million in the spring of 2021 to New England Patriots owner Robert Kraft. A lawsuit filed by Ziel Feldman against Meir alleges the net proceeds from the sale would be $20 million. EZL 40 Meadow Lane LLC owns 95% of EAM 40 Meadow Lane LLC. The Chapter 7 bankruptcy petitions claim assets between $0 and $50,000 and liabilities of $10 million to $50 million, and “no funds will be available to unsecured creditors.” Creditors, not noted as secured or unsecured, included Ziel Feldman’s HFZ Capital, YH Lex Estates LLC and Nir Meir himself, among others. PACER LINK
BD Hotels Chelsea Hotel entity sues tenants who refuse access: BD Hotels, through the entity Chelsea Hotel Owner LLC, filed a suit alleging a group of tenants in the building have refused access to install code-required life-safety elements such as sprinklers. The legendary hotel recently began taking reservations again. Court LINK