Courts roundup: $9M Gowanus contract dispute, $5.75M pre-foreclosure, $2M Brooklyn bankruptcy

$9M sale contract dispute in Gowanus: The owner of 284 4th Avenue in Gowanus, Brooklyn, Yuk Jin Lam alleges there was a contract to sell the property for $9.02 million, but the buyer, 284 4TH LLC, did not close. According to the complaint, “On or about September 8, 2022, the plaintiff entered into a Contract of Sale ( the “Contract”) with defendant for the purchase and sale of the real property known as 282-284 4th Avenue Brooklyn, New York for $9,020,000…That in accordance with the Contract, the defendant deposited the sum of $451,000.00 as downpayment deposit…That the date for Defendant to close was on or before December 8, 2022 and Defendant failed to do so despite numerous request to close and is in default.” Francis Leung of Fkal Management submitted a new building construction project for a 33-unit, 26,138 square-foot residential (R-2) building at 284 4 Avenue. The plan was filed on June 8, 2022. It calls for the construction of a 98-foot tall, 10-story building and was filed with the New York City Department of Buildings under job number B00751849. The architect is Angelo Ng + Anthony Ng Architects S. The project is described in the filing as: filing ten (10) story mixed-use building with thirty-three dwelling units, including inclusionary housing. LINK

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

$5.75M Bellerose Manor hotel pre-foreclosure: Lender Itria Ventures filed a pre-foreclosure action against the owner of the hotel property at 249-05 Jericho Turnpike in Bellerose Manor, Queens. “On or about March 2, 2018 and pursuant to the terms of a Loan and Security Agreement (the “Paras Loan Agreement”), the Plaintiff loaned the principal amount of Five Million Seven Hundred Fifty Thousand Dollars ($5,750,000.00)…The lawful rate set forth in the Paras Note is ten (10.00%) percent and the default rate of interest is fifteen (15.00%) percent. The Paras Note has a maturity date of March 2, 2020.” The loan was not repaid, according to the complaint. In addition, there is an additional loan from 2016 with an original principal of $3.5 million, which is also in default. The hotel building in Bellerose Manor has 14,979 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.7 million. LINK

$2M bankruptcy filed in Brownsville: Developer Sigmund Freund filed a petition yesterday to place a development project at 2022 Strauss Street in Brownsville, Brooklyn in bankruptcy protection to defend against an entity level auction scheduled for today. According to the petition, the property is worth $2 million and has debts of $1.4 million. A UCC auction is scheduled for January 5, 2023, the day after the petition was filed. Sigmund Freund borrowed $1.295 million from Tower Fund Capital for the conversion of a two-family to a five-family. According to the petition, “KEW NDBM HOLD 2607, LLC (the “Debtor”) is the owner, developer and landlord of real estate located at 2022 Strauss Street, Brooklyn, NY 11212 (the “Property”). The Property is multifamily with five residential units. None of the units are occupied, because the Property is mid construction; the construction is 70% complete. The Debtor purportedly defaulted under a loan with NY Tower Fund Capital LLC (“NYT”). This resulted in NYT scheduling an auction for January 5, 2023, of my limited liability company interests in the Debtor. In doing so NYT is attempting to exercise control of the Debtor… Auction of my limited liability company interests in the Debtor is scheduled for January 5, 2023. This is due to my personal guarantee of the amounts due under the Note.” The property in Brownsville has 2,080 square feet of built space and 4,000 square feet of additional air rights for a total buildable of 6,075 square feet according to a PincusCo analysis of city data. The parcel has two buildings with frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $686,000. LINK