Courts roundup: $7M pre-foreclosure; $4.5M Borough Park bankruptcy; W’burg retail delay, more

$7M pre-foreclosure for 56-unit Bronx rental: New York Community Bank filed a pre-foreclosure suit against the owner entity of 106 Marcy Place, a 56-unit elevator building in Concourse, the Bronx. The suit notes elements of default, including the death of the guarantor, Jeffrey Schneider. The bank filed the suit, alleging that, “Borrower is in default under the Loan Documents for, among other things, its failure to make timely monthly payments under the Loan Documents since at least October 1, 2021, and its failure to timely pay real estate taxes and other municipal charges for the Mortgaged Property (the “Payment Defaults”). Borrower has been in default since at least October 15, 2021. Borrower is in default under the Loan Documents due to, among other things, the death of Guarantor [Jeffrey E. Schneider] on February 6, 2022. By letters dated October 6, 2021, November 17, 2021 and January 20, 2022, Lender notified Borrower and Guarantor of the Payment Defaults under the Loan Documents and demanded cure by a date certain, which did not occur.” SUIT

Court filings are the positions of one party and are not necessarily accurate or complete. In some instances, a pre-foreclosure suit must be filed to begin loan modifications.

$4.5M Borough Park bankruptcy: Property owner Zalmen Reisz claims religious school tenants in two adjacent, three-story walkup buildings at 1318 and 1320 43rd Street with a combined 9,000 square feet, in Borough Park property have not paid rent with arrears totaling $1,185,466. The property is worth $4.5 million, Reisz claims. Reisz obtained in state court a judgment from the Congregation Ichud Chasidum aka Khal Ichud Chasidum And Congregation Machna Shalva, for $462,481. “However, the School failed to exercise the renewal option. The Lease also had provisions incorporating the past due arrears under a prior lease. The School stopped paying rent and/or use and occupancy in or about December 2019 and other than sporadic payments, the School continues to operate at the Property without paying rent.” FILE

EB-5 investors sue Ziel Feldman and HFZ Capital Group, seeking $11.4M: Another group of EB-5 investors filed suit stating they are seeking $11.445 million. According to the suit, “All above-named Petitioners invested $500,000 (plus administrative fees of $45,000) in the development of two different real estate development projects, The Charles and subsequently Bryant Park…” A previous group of EB-5 investors, who had put money towards 76 11th Avenue, filed suit earlier this month seeking $26 million. SUIT

Retail tenant claims Williamsburg space not ready, was expected in 2019: The Learning Experience, a pre-school company, alleges the original completion date for the approximately 10,000 square feet of space at 185 Marcy Avenue, was September 2019, but it still has not been completed and delivered. The plaintiffs are suing for a commission payment. A pre-foreclosure case was filed against the owners, Acuity Capital Partners, earlier this month over a $36 million loan. SUIT