Fannie Mae files to foreclose on $30M loan at former Brooklyn College dorm

Financing giant Fannie Mae filed to foreclose on a $30.2 million loan secured by the 58,027-square-foot former dorm used by Brooklyn College students at 1 Kenilworth Plaza in Flatbush. The new construction 213-unit building was opened in 2010. The Residence Hall was closed to Brooklyn College students as of late 2020, according to an article in the student publication, Vanguard. The management of the building was criticized in the article.

This is the first commercial loan foreclosure Fannie Mae has filed in New York City since at least September 2020, according to a PincusCo Media review of court records. The borrower, who also filed the new building plans in 2007, was New Brooklyn Development, LLC, a company headed by Yosef Sefi Zvieli.

According to the complaint,  “Beginning on April 1, 2020, the Borrower-Defendant failed to make its required Monthly Payment. The Borrower-Defendant has made no such required Monthly Payment for each of: April 1, 2020, May 1, 2020, June 1, 2020, July 1, 2020, August 1, 2020, September 1, 2020, October 1, 2020, November 1, 2020, December 1, 2020, January 1, 2021, February 1, 2021, March 1, 2021, April 1, 2021, May 1, 2021, June 1, 2021, and July 1, 2021. Each failure to pay a Monthly Payment as due constituted an Event of Default.” Notwithstanding and without waiving these undisputed Events of Default, on May 5, 2020, Plaintiff and the Borrower-Defendant entered into a Forbearance Agreement.” The final such extension of the Forbearance Agreement expired March 31, 2021, and Plaintiff did not agree to any further forbearance.” On June 4, 2021, Plaintiff sent a letter to the Borrower-Defendant notifying it that it was in default of its obligations under the Loan Documents by virtue of its failure to make its Monthly Payments as due (the “Demand Letter”).”

Acris link.