Courts roundup: $96M FiDi hotel pre-foreclosure, $3M Lincoln Square dispute

Westbrook files $96M pre-foreclosure at Urban Commons FiDi hotel: Westbrook Partners, which lent $96 million in 2018 for the acquisition by the Los Angeles-based investment firm Urban Commons, of the hotel condominium unit at 2 West Street in the Financial District known as the Wagner, filed a pre=foreclosure action yesterday seeking to foreclose on the loan. In May 2022, Urban Commons sued to block what it claimed was an imminent foreclosure on its ground lease by the Battery Park City Authority. The loan matured on December 30, 2020, and according the new suit, was not repaid, and so the lender declared the loan in default. Westbrook Partners and Millennium Partners sold the hotel unit to Urban Commons for $147 million, then Westbrook provided the $96 million loan. LINK

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

The hotel condo in NYC has 289,550 square feet of built space according to a PincusCo analysis of city data.

On this tax block, PincusCo has identified the owners of 18 of the 65 commercial properties representing 14,083,989 square feet of the 17,601,478 square feet. The largest owner is Brookfield Properties, followed by Goldman Sachs and then LeFrak. On the tax block, there were two new building construction projects totaling 19,798 square feet. The largest is a 18,798 square-foot A-2 building developed by Gwen Dawson with plans filed February 2, 2022 and it has not been permitted yet. The second largest is a 1,000 square-foot U building developed by Gwen Dawson with plans filed February 3, 2016 and permitted November 15, 2016.

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

Ashkenazy sues Lincoln Square condo board for $3M following water damage: Ashkenazy Acquisition sued the board of managers for the Allegro condominium at 62 West 62nd Street in Lincoln Square, alleging the board has not made repairs to damage caused by a 2020 city water main break, and that in turn caused Ashkenazy to lose a tenant.

According to the complaint, “New York Institute of Technology (“NYIT”) had been the tenant of the Unit pursuant to written lease dated January 16, 2009, for a 15-year term which commenced on June 4, 2009. As a direct result of the Water Conditions, NYIT ceased making payment of rent pursuant to the Lease. As a direct result of the Water Conditions, the NYIT Lease was terminated as of August 9, 2022. As a direct result of the Water Conditions, Plaintiff lost rental income from NYIT in the amount of $3,433, 131… In January of 2020 there was a water main break on the Upper West Side of Manhattan which substantially damaged and destroyed the Unit (the “Casualty”). Plaintiff promptly notified Defendant of the Casualty. Defendant failed to repair and restore the Condominium following the Casualty. As a result, there has been and continues to be water infiltration into the Premises (the “Casualty Water Infiltration”).” LINK