Three pre-foreclosures totaling $11.8M in Soho, NoMad, Ridgewood

$5.65M pre-foreclosure in Soho: A special servicer on behalf of CMBS bondholders filed a pre-foreclosure action on debt totaling $5.65 million, securd by Veracity Equities’ retail condo at 111 Mercer Street in Soho. Edmond Li’s Veracity Equities acquired the mixed-use building in January 2008 for $12.35 million.

A total of $13.68 million of debt was obtained in 2011, and the building was converted to a condominium ownership structure, with four residential units and one retail unit. Veracity sold the four residential units for more than $23.6 million between 2013 and 2015, and retained the retail unit. Cantor Commercial provided a $5.65 million loan in 2013 secured by the retail space.

Court filings represent the positions of one party and are not necessarily accurate or complete.

According to the complaint, “Borrower has defaulted under the Note and Mortgage by, among other things, failing to pay the principal, interest and other payments due under the Loan. By letter dated October 3, 2022, Lender notified Borrower that it had defaulted under the loan documents by failing to pay all amounts when due thereunder.

The condo building with 4 residential units in SoHo has 15,128 square feet of built space and 1,475 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-5A which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. LINK

$4.18M pre-foreclosure in NoMad: Directed Capital filed a pre-foreclosure action seeking to foreclose on $4.18 million in debt secured by Moin Moinian’s 47 East 30th Street, a mixed-use building in NoMad Manhattan. Moin Moinian owns the investment company, Moin Development.

Moin Moinian bought the 5-unit mixed-use building in January 2013 for $4 million. In December 2017, Moinian refinanced with $4.25 million from Savoy Bank. Savoy sold the loan to Directed Capital in December 2021.

According to the complaint, “Borrower is in default under the terms of the Restated Note as modified by the Forbearance Agreement, by failing to make the required monthly payment of interest for June 1, 2022, and each month thereafter, and also due to Existing Events of Default (as defined and set forth in the Forbearance Agreement) (collectively the “Stated Defaults”). By correspondence dated July 14, 2022, Plaintiff 3 declared the Stated Defaults, terminated the Forbearance Agreement, and demanded that Borrower make payment of all amounts due on the Loan, and instituted the default rate of interest at 24% per annum. A true copy of the July 14, 2022 correspondence is attached hereto as Exhibit “14”. By correspondence dated November 29, 2022, Plaintiff reiterated the declaration of the Stated Defaults, termination the Forbearance Agreement, demand that Borrower make payment of all amounts due on the Loan. A true copy of the November 29, 2022 correspondence is attached hereto as Exhibit “15”. As of December 31, 2022, the principal amount of 4,178,292.26 is outstanding and owing to Plaintiff…”

The mixed-use building with 5 residential units in NoMad has 5,320 square feet of built space and 15,357 square feet of additional air rights for a total buildable of 20,670 square feet according to a PincusCo analysis of city data. The property is owned by Moin Development. The parcel has frontage of 19 feet and is 98 feet deep with a total lot size of 2,067 square feet. The lot is irregular. The zoning is C6-4A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled 0.0 and was provided by Directed Capital on December 29, 2021. LINK

$2M pre-foreclosure in Ridgewood: Balbec Capital’s LB Igloo Series IV Trust filed a pre-foreclosure action related to $2 million in debt secured by 652 Grandview Avenue in Ridgewood, Queens.

According to the complaint, “On November 5, 2019, 652 Grandview Ave LLC (hereinafter “Borrower”) and Jacob Zicherman, as guarantor (hereinafter “Guarantor”), being indebted to Sharestates Investments, LLC, in the sum of $2,006,000, executed a consolidated note to secure that sum with an initial interest rate of 6.875% per annum, payable in successive monthly installments of interest only on the first day of each month commencing January 1, 2020 and the final payment to be made December 30, 2029 (hereinafter “Note”). The Note also provides for a default interest rate of 23.990%… That the Mortgagor defaulted on the CEMA Mortgage on September 1, 2020 and since that date has failed to comply with the conditions of the CEMA Mortgage by failing to pay portions of principal, interest or taxes, assessments, water rates, insurance premiums, escrow and/or other charges.”

The mixed-use building with 2 residential units in Ridgewood has 4,900 square feet of built space according to a PincusCo analysis of city data. The parcel has two buildings with frontage of 25 feet and is 95 feet deep with a total lot size of 2,377 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Ridgewood North Historic District. The city-designated market value for the property in 2022 is $1.2 million. Plans were filed in 2020 to increase the unit count to three. LINK

Direct link to the property’s ACRIS page and link to DOB NOW portal.