Courts roundup: $31.5M S. W’burg condo UCC auction, $2.3M Prospect LG pre-foreclosure, $1.3M Crown Heights pre-foreclosure

$31.5M UCC auction scheduled in January for South Williamsburg condo: A UCC auction is scheduled for January 6, 2023, for the sale of equity interest in a 25-unit condominium development at 425 Marcy Avenue in South Williamsburg citing debts of $31.5 million. The lender offering its stake is DW Partners. The development, led by Ezra Unger, is tied up in litigation, including a new filing December 16, 2022, by the original property owner, Aron Lebovits, who makes various allegations about the property ownership history. The Real Deal covered the situation extensively here.
On the tax lot, the most recent condominium plan was filed by 425 Marcy Avenue LLC to create 24 residential units and 1 commercial units in a building at 415 Marcy Avenue in Williamsburg, Brooklyn, called 427 Marcy Avenue Condominium that has a $42.8 million sellout, according to an January 4, 2021 submission to the New York State Attorney General. The principal of the sponsor, 425 Marcy Avenue LLC, was Ezra Unger.

Zevi Chaskelson of 425 Marcy Ave LLC submitted a new building construction project for a 23-unit, 47,351 square-foot residential (R-2) building at 427 Marcy Avenue. The plan was filed on November 20, 2015. It calls for the construction of a 84-foot tall, seven-story building and was filed with the New York City Department of Buildings under job number 321276445.

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

COURT LINK

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

$2.3M pre-foreclosure in Prospect Lefferts Gardens: California-based lender Pryme Capital filed a complaint alleging a $2.345 million loan secured by 130 Lincoln Road in Prospect Lefferts Gardens, Brooklyn, was in default. The mixed-use building in Prospect Lefferts Gardens has 5,311 square feet of built space according to a PincusCo analysis of city data. The parcel has two buildings with frontage of 100 feet and is 105 feet deep with a total lot size of 10,500 square feet. The zoning is R2 which allows for up to 0.5 times floor area ratio (FAR) for residential. The property is in the Prospect Lefferts Gardens Historic District. The city-designated market value for the property in 2022 is $2.6 million. Ari Shpanya of Pryme Capital signed the complaint. According to the complaint, “On October 30, 2020 CITADEL commenced an action to foreclose the $1,650,000 Mortgage. The foreclosure action was settled by CITADEL by agreeing for valuable consideration to assign its interest in the $1,650,000 Note and $1,650,000 Mortgage to Plaintiff and also by accepting a Confession of Judgment from B & W. On November 29, 2021 the $1,650,000 Note mentioned above was delivered to Plaintiff with an allonge evidencing the transfer.” On that day, the debt from Pryme was increased to $2.345 million. According to the complaint, the debt matured on September 1, 2022, but was extended to November 1, 2022. The debt was not repaid, according to the complaint, triggering this action. LINK

$1.3M pre-foreclosure in Crown Heights: The trustee for bondholders of the Starwood Mortgage Residential Trust 2019-INV1 allege the $1.3 million loan secured by 1623 St. Johns Place in Crown Heights, Brooklym, is in default. The property with 4 residential units in Crown Heights has 3,542 square feet of built space and 1,939 square feet of additional air rights for a total buildable of 5,479 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 112 feet deep with a total lot size of 2,255 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $637,000. The property is also subject to a junior $1 million loan that covers this and 11 other properties the property owner owns in Brooklyn. According to the complaint, “Westside 1767 LLC and [loan signatory] failed to comply with the conditions of the note and mortgage by not making the payment that was due on April 1, 2020 and subsequent payments.” LINK

Correction: A prior version incorrectly identified the firm DW Partners as DW Capital. The correct name is DW Partners.