Eretz Group signs $27.6M refi for office in Garment District, ending foreclosure threat

Eretz Group through the entity Sheva 7 LLC as borrower signed a refi loan with lender Israel Discount Bank valued at $27.6 million for the office building (O6) at 252 West 37th Street in Garment District, Manhattan.
The deal closed on January 6, 2026 and was recorded on January 9, 2026. The prior lender was Comm 2014-CCRE16 and KeyBank which held debt that had an original loan amount of $34.4 million. The property has 139,629 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $197 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on February 28, 2007, for $33.7 million. The signatory for Eretz Group was Abraham Talassazan . The signatory for Israel Discount Bank was Daniel Miller and Ryan Shay . Building was under thread of foreclosure The suit was a $41 million commercial foreclosure concerning a loan filed on April 1, 2024, by COMM 2014-CCRE16 and LNR Partners against Eretz Group and Abraham Talassazan.

Prior sales, articles and revenue

The 139,629-square-foot property generated revenue of $7.8 million or $56 per square foot, according to the most recent income and expense figures.

The property

The office building in Garment District has 139,629 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 93 feet and is 98 feet deep with a total lot size of 9,131 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $30.5 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $41 million commercial foreclosure concerning a loan filed on April 1, 2024, by COMM 2014-CCRE16 and LNR Partners against Eretz Group and Abraham Talassazan. In addition, according to city public data, the property has received $600 in OATH penalties in the last year.

Development

For the tax lot building, it received a renovation certificate of occupancy on November 18, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Garment District is the 6th most active neighborhood among other neighborhoods. It had 10.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space. There were seven pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 15 commercial properties representing 2,243,632 square feet of the 2,386,056 square feet. The largest owner is George Comfort & Sons, followed by Gfp Real Estate and then A&H Acquisitions.
There are no active new building construction projects on this tax block.

The majority, or 94 percent of the 2.4 million square feet of built space are office buildings, with elevator buildings next occupying 4 percent of the space.

The borrower

The PincusCo database currently indicates that Eretz Group owned at least five commercial properties in New York City with 634,817 square feet and a city-determined market value of $201.9 million. (Market value is typically about 50% of actual value.) The portfolio has $124.4 million in debt, borrowed from Aareal Capital and Comm 2014-CCRE16. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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