Flagstar files $46M pre-foreclosure at Tribeca office building

Flagstar Bank filed a $46 million pre-foreclosure action alleging a loan secured by the 128,940-square-foot office building at 291 Broadway, at the corner of Reade Street, was in default. The property is owned by Sutton Management, which is led by Abraham and Samuel Sutton. The bank, alleging payment defaults, filed the complaint July 10, 2025, in New York State Supreme Court in Manhattan.

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

Case LINK

According to the complaint, “Borrower failed to comply with the terms of the Loan Documents, including and especially the Note and the Mortgage, by failing to make the required monthly payments due under the Loan Documents for December 2024 through May 2025 and thereafter, and by failing to make the required late fee payments for November 2020 and thereafter.”

Recent activity for Sutton Management:

• Sutton Management and Hyman Azar borrowed $8 million from Bank of Montreal for 54 East 170th Street, Mt Eden, Bronx on March 07, 2025.

• Sutton Management sold 54 East 170th Street, Mt Eden, Bronx for $7.1 million to Hyman Azar on March 07, 2025.

• Sutton Management sold 30-76 Steinway Street, Astoria, Queens for $2.1 million to Mou Chor Tung on February 08, 2024.

• Sutton Management borrowed $7.7 million from Santander Bank for 550 5th Avenue and 568 5th Avenue, South Slope, Brooklyn on December 21, 2023.

The property

The office building in Tribeca has 128,940 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 66 feet and is 124 feet deep with a total lot size of 7,650 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 $24 million. The most recent loan totaled $46 million and was provided by New York Community Bank on October 4, 2019.

Prior sales and revenue

The 128,940-square-foot property generated revenue of $5.7 million or $44 per square foot, according to the most recent income and expense figures.

Development

For the tax lot building, it received its initial certificate of occupancy on August 16, 2012.

Violations and lawsuits

According to city public data, the property has received $3,780 in ECB penalties and $6,160 in OATH penalties in the last year.

The neighborhood

In Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has near average sales volume among other neighborhoods with $403 million in sales volume in the last two years and is the 22nd highest in Manhattan. For development, Tribeca has near average amount of major developments among other neighborhoods and is the 13th highest in Manhattan. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 10 commercial properties representing 470,221 square feet of the 530,240 square feet. The largest owner is 62-64 Reade Street Llc, followed by Jean Hieber and then Olmstead Properties. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Sutton Management owned at least 11 commercial properties with 202 residential units in New York City with 398,409 square feet and a city-determined market value of $96.7 million. (Market value is typically about 50% of actual value.) The portfolio has $173.3 million in debt, with top three lenders as New York Community Bank, Customers Bank, and Argentic Investment Management respectively. Within the portfolio, the bulk, or 48 percent of the 398,409 square feet of built space are elevator properties, with office properties next occupying 38 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

The surrounding

Within a 400-foot radius of 293 Broadway, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a permit issued on June 12, 2025 for the $1.5 million renovation of 20,496-square-foot residential (R-2) building with eight residential units at 83 Chambers Street.

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