Courts roundup: 3 pre-foreclosures totaling $57.6M filed in Brooklyn, Bronx

Lenders filed three pre-foreclosure actions yesterday above $1 million for a total of $57.6 million in Brooklyn and the Bronx.

$34.5M foreclosure action at 55-unit rental in East Flatbush: A lender in care of Greystone & Co. filed to foreclose on a $34.5 million loan secured by 271-279 Lenox Road in East Flatbush, owned and developed by Eli Karp of Hello Living. In 2019, Greystone & Co. refinanced the $34.5 million in debt for the property which is improved by a 55-unit apartment building. According to the complaint, “Borrower failed to comply with the terms and conditions of the Loan Documents by: (1) failing to make the monthly payment due in April 2022 or any payment thereafter; and (2) permitting a lien to be filed against 100% of Guarantor’s ownership interests in the Borrower as evidenced by a UCC lien filed on November 8, 2021 by creditor iCross Fund 4 LLC, which is a non-permitted Transfer under the Loan Documents. By letter dated May 18, 2022, Plaintiff gave Borrower written notice of its defaults and accelerated the Loan. The amounts due under the Mortgage thereby became immediately due and payable.” The new lender is at care of Greystone & Co. New York City office, and acquired the loan on August 3, 2022. LINK

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

$15.1M foreclosure action against Clinton Hill property: Valley National Bank filed to foreclose on a $15.1 million loan it provided in July 2019 for Serabjit Singh Malhotra’s acquisition and redevelopment of the 29,250-square-foot building at 257 Washington Avenue in Clinton Hill, Brooklyn. Malhotra bought the building from Brookland Capital which had sought to convert the property to condos. LINK

$8M foreclosure action at 23-unit Bronx rental: Lender Piermont Bank filed to foreclose on an $8 million loan secured by a 23-unit new construction project in University Heights, the Bronx. Craig Nassi through his BCN Development refinanced the 21,061-square-foot project at 65 Buchanan Place with $8 million in October 2021. The lender alleges the June 2022 payment was not made, nor subsequent payments and it declared the loan in default. According to the complaint, “On or around June 1, 2022, Buchanan defaulted in making monthly principal and interest payments for the months of June 1, 2022 through July 1, 2022 in the total sum of $29,377.73 pursuant to the CEMA and Mortgage Note which is now in default. On or around July 8, 2022 Plaintiff sent to Buchanan a Demand for Payment via certified mail for amounts owed for June, 2022 and July, 2022, however, Buchanan failed to remit any payments to Plaintiff within the ten day deadline given in said Demand.” LINK