Courts roundup: investor seeks $7M from HFZ; ELO seeks $1.4M after $110M sale; $26M JTRE foreclosure

Courts roundup for June 9 and 10: There were no bankruptcies of interest and two foreclosures above $5 million.

Please note that court filings are the positions of each party and are not necessarily accurate or complete.

Investor sues HFZ, Ziel Feldman for $7.2M: An investor affiliate of Arel Capital Partners filed a suit seeking $7.2 million from HFZ Capital Group, Ziel Feldman and others. The investor provided $7.2 million which could be converted into the acquisition of apartments at the Astor at 235 West 75th Street. “In Plaintiff’s case, units 402 and 412 at the Astor, were designated for potential acquisition if the conversion option was exercised, based on a total purchase price of $9,079,000, less Plaintiff’s initial Net Capital Contribution of $7,263,200, for a balance of $1,815,000. Plaintiff’s potential acquisition was memorialized by a corresponding Membership Interest Purchase Agreement, likewise dated May 21, 2014 and signed by HFZ RES Portfolio Manager as agent.” The RES Portfolio OA governs the legal and financial affairs of HFZ Portfolio Holdings and provides in relevant part that HFZ Portfolio Holdings was organized in Delaware in 2013 to: “(i) hold an indirect interest in the Property, own, develop, manage, operate, finance, sell, lease or otherwise dispose of any part of or all of the Property.” 27. For purposes of the RES Portfolio OA, the term “Property” is defined to include all of the four buildings comprising the Four Pack Properties as defined above, to wit, 88 Lexington Avenue, 90 Lexington Avenue, 235 West 75th Street and 301 West 53rd Street.” The attorney for the plaintiff is Kevin Nash of Goldberg Weprin Finkel Goldstein LLP. LINK

ELO sues Chetrit, Yadidi sellers of $110M Midtown building for $1.4M: The ELO Organization is seeking $1.4 million from affiliates of AB & Sons and Sioni Group, which sold 15 West 47th Street for $110 million. The ELO Organization bought the building in December 2020 for $110 million from Ray and Jack Yadidi and Isaac and Eli Chetrit after the sale originally was delayed. The suit is seeking a, “complete accounting and judgment for of all prepaid and post-closing rent received by Defendants as may be revealed by such accounting. Said damages include, without limitation, credits and sums due Plaintiff for improper closing adjustments, undisclosed pre-paid rent, post-closing adjustments and property damage resulting lost rent caused by Defendants.” LINK

$15M foreclosure at Hello Living Brooklyn project: Lily Guo’s iCross Funding is foreclosing on a loan with an original principal of $15 million secured by Hello Living’s 2417 Albermarle Road new development in Brooklyn. Arbor Realty assigned the loan to iCross Funding on April 19, 2021. LINK

$26M foreclosure at JTRE Nomad building: The special servicer for the $26 million loan originated by Natixis Real Estate Capital in August 2017 filed to foreclose on the loan secured by Jack Terzi’s 6-8 West 28th Street in Nomad. LINK