Courts roundup: Madison Realty Capital, Greenland USA, Lionscove

Buyer claims Madison Realty Capital balked at Williamsburg sale: An anonymous plaintiff alleges one of the city’s most active real estate investment firms, Madison Realty Capital, is balking at selling 15-unit and retail pair of new construction buildings at 203-205 North 8th Street in Williamsburg, that have been subject to foreclosure and bankruptcy proceedings. Madison Realty Capital is the lender that filed a $3 million pre-foreclosure action in 2015, 509303/2015 against beleaguered developer Chaim Miller and others.

Court filings are the positions of one party and may not be accurate or complete.

The judge in that 2015 case approved a sale, so to block that sale in 2020 the entity was placed into bankruptcy, under index number 1-20-40793-nhl. Following a broker-led bankruptcy sale process, four potential buyers emerged, including Madison Realty Capital, an “insider group” and two arms-length buyers.

Greg Corbin, as president of bankruptcy and restructuring at Rosewood Realty Group, ran the bankruptcy sale process, with the sale set for December 2021, and an “insider” was identified as a potential buyer.

According to a Corbin declaration in the bankruptcy record, “In addition to the Secured Lender and the Insider Group, Rosewood procured two 3rd party arms-length potential purchasers who completed due diligence, signed hard contracts, and submitted the required deposit of $1,000,000 (one million dollars). All four parties participated in this first auction and after over a dozen rounds of bidding the Insider Group was the high bidder and declared the Successful Bidder. However, the Insider Group subsequently defaulted and the sale process had to be resumed.”

The would-be buyer, 203-205 North 8th Property LLC, filed this action, a summons alleging Madison Realty Capital did not proceed with the sale.

According to the summons, Madison Realty, “agreed to convey to Plaintiff the real property known as 203-205 North 8th Street, Brooklyn, New York 11211 in a contract of sale. Plaintiff paid a deposit in the principal amount of $1,000,000. Plaintiff is obligated to convey the Property. Defendant breached the contract and failed to perform and deliver title.”

The would-be buyer entity 203-205 North 8th Property LLC is in care of a law firm in California.

Case LINK

Direct link to the property’s ACRIS page. 

550 Vanderbilt condo board alleges $1.8M in construction defects: Condo buyers through the condo board of 550 Vanderbilt Avenue in Prospect Heights, Brooklyn, allege construction defects at the residential building that the joint venture Greenland Forest City Partners developed.

According to the summons, “Said breaches of contract relate to defendant’s failure to properly construct the Condominium located at 550 Vanderbilt Avenue, Brooklyn, New York. The construction defects include, but are not limited to, defects in the construction of the plumbing, HV AC systems, electrical systems, roofs, exterior walls, windows, sidewalks, flooring, insulation, fire-stopping, hallways, showers.” LINK

Lionscove files $1.4M pre-foreclosure in Sunset Park: Lender Lionscove, previously known as da Motta Leonard Capital and DML Capital, filed a $1.4 million pre-foreclosure action against the owner of the 3,000-square-foot building 328 41st Street in Sunset Park, Brooklyn. The lender provided the loan through DML Capital Mortgage Fund. According to the complaint, “The Defendant, Investor’s Genie LLC, has failed to comply with the terms and provisions of the Mortgage and Note by failing to pay principal and interest and/or taxes, insurance premiums, escrows and/or other charges commencing with the August 1, 2022 payment. That there is now due and owing to the Plaintiff, the principal sum of $1,425,000 with interest thereon from July 1, 2022, plus accumulated late charges together with any sums advanced by Plaintiff on behalf of the Defendant.” LINK