Courts roundup: $3.5M South Slope bankruptcy, $3.6M pre-foreclosure in Carnegie Hill, $3.2M in Ridgewood

$3.5M South Slope bankruptcy: Manuel Goldschmidt filed a Chapter 7 bankruptcy to block a foreclosure auction on a four-story loft building scheduled for today, May 4, 2023 at the Brooklyn State Supreme Court. Goldschmidt reports in the Chapter 7 (liquidation) petition that the Loft Law property at 223 15th Street in South Slope, Brooklyn, is worth $1.7 million according to an undated appraisal but has a secured creditor of $3.5 million. Normandy Capital Trust for the lender Sharestates Investments, LLC Series BC2017-001277, filed a pre-foreclosure in March 2021. 505722/2021 According a recent court filing, “Pursuant to a Judgment of Foreclosure and Sale duly entered on October 13, 2022, I, the undersigned Referee will sell at public auction outside on the courthouse steps of the Kings County Supreme Court, 360 Adams Street, Brooklyn, NY on May 4, 2023… Approximate amount of judgment is $3,531,697.02 plus interest and costs.”
The bankruptcy petition states in part, “The subject property is regulated by the loft law. There is a tenant residing in the top floor unit that is grandfathered in as a result of the loft law. This tenant cannot never [sic] be evicted. Moreover, rent can only be collected from t [cut off].”
Goldschmidt bought the property for $300,000 in 2013, the obtained a $2 million mortgage in 2017. Bankruptcy LINK

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

$3.6M pre-foreclosure at 6-unit in Carnegie Hill: A trustee for a securitized loan Series 2013-GCJ12 filed a pre-foreclosure suit on April 27, 2023 alleging a $3.6 million loan was in default secured by a six-unit walkup at 1392 Third Avenue in  Carnegie Hill, Manhattan. The property is owned by Alan Jamnik. The current amount owed on the original loan is $2.9 million, the complaint says.
According to the complaing, “Borrower failed to timely pay the Monthly Debt Service Payment Amount on the February 2023 Monthly Payment Dates and each Monthly Payment Date thereafter (the Payment Defaults”)… The Reporting Failure Defaults also triggered recourse liability to the Borrower and Guarantors under, inter alia, Section 11.22(xii) of the Loan Agreement and Section 1.1 of the Guaranty. 58. Despite Notices of Default and Acceleration (as defined below), Borrower and Guarantors failed to cure the default… Since that time [Jan. 23, 2023] Borrower and Guarantors have caused additional events of default to occur under the Loan Documents, including: (i) Borrower’s failure maintain the Property and the numerous liens and violations against the Property; and (ii) numerous concerning discrepancies between the year-end base rent as reported on Borrower’s financial statements provided by Borrower and Borrower’s tax returns. ” Current amount due is $2,921,930.75.
The mixed-use building with 6 residential units in Carnegie Hill has 4,638 square feet of built space and 9,853 square feet of additional air rights for a total buildable of 14,490 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 69 feet deep with a total lot size of 1,449 square feet. The zoning is R10A which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.3 million. LINK

Direct link to the property’s ACRIS page.

$3.15M pre-foreclosure on 6-unit in Ridgewood: Great Lake Funding I Trust filed a pre-foreclosure action May 2, 2023 alleging a $3.15 million loan was in default, which is secured by the six-unit walkup at 59-23 71st Avenue in Ridgewood, Queens. The owners are Joel Mendlowitz and Aryeh Mendlowitz. The walkup building with six residential units in Ridgewood has 5,751 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 27 feet and is 100 feet deep with a total lot size of 2,722 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Central Ridgewood Historic District. The city-designated market value for the property in 2022 is $774,000. LINK