Courts roundup: CW Realty seeks to block UCC sale of $120M project; Cline sues Schuster
CW Realty seeks to block UCC foreclosure auction on $120M project: Cheskie Weisz’s CW Realty is seeking an injunction to block a UCC foreclosure auction set for November 4, 2021, on a $10 million mezzanine note secured by CW Realty’s ownership in 187 Kent Avenue development, valued at $120 million. CW Realty identifies the entity seeking the foreclosure as Invictus 187 Mezz LLC. Invictus also owns the senior loan with a principal of $78 million. Invictus borrowed from Madison Realty Capital to finance its purchase of the loan.
CW Realty claims the amount due on the mezz is far lower than $10 million, that the bidding is “rigged” and that the lender is not dealing in good faith. Invictus allegedly scheduled two UCC foreclosure auction locations, both set for November 4, 2021, one on the steps of the county courthouse at 60 Centre Street, and the other at the law offices of Cole Schotz. According to the complaint, “Indeed, Plaintiff had a closing for a refinancing scheduled for mid-July 2021, that Defendant thwarted. When Defendant was assigned the Pledge, it intervened and contacted the lender to stop the lender from issuing a refinance loan. The third-party lender then backed out of the closing.” “This was designed to deter potential bidders, gift the property to Defendant, and clearly signals the process is rigged and ensures that no matter how high the bid, Defendant will obtain the property.” CW Realty claims: “On October 5, 2021, Plaintiff’s principal wrote Defendant, “Your numbers are totally incorrect. You should go back do the right math and get back to me. You are a few million dollars off.”
A court filing is the position of one party and may or may not be complete or accurate.
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Investor William Cline sued developer Joshua Schuster over $1M loan: William Cline, founding partner of Alcova Capital Management, as plaintiff, alleges he lent $1 million to Joshua Schuster and Silverback Development to partially fund the purchase of 580 Gerard Avenue in the Bronx. The suit alleges Schuster has not repaied the money and with interest more than $1.3 million is due. In a related case, on October 25, developer Karten sued Schuster alleging he was blocking the closing of a $17 million loan to refinance that parcel.