Following August trial, Maverick, Lightstone spar over Strulovitch loan origination

This month, private equity fund manager Maverick Real Estate Partners and a division of the Lightstone Group sparred over whether loans given by Signature Bank to Chaskiel Strulovitch between 2012 and 2016 with a secured debt of $37 million were legal.

The parties held a four-day trial in August following the confirmation of the bankruptcy plan, in which the plan was discussed, as well as the legality of the loans.

Strulovitch filed for bankruptcy protection in May 2019, citing buildings including 53 Stanhope Street in Bushwick.

The question was whether the failure to disclose the holders of profit participations to Signature Bank violated banking laws at the time of the loans. The debtor, backed by the Lightstone Group, said they did not, while Maverick maintains they did. The court has not yet issued a ruling and each side filed briefs supporting their positions, in recent weeks.

Meanwhile, in July, the total rental income ticked up in the portfolio to $315,943 from $306,002 in June. But the July figure is below the total revenue figure for July 2019, which was $441,716, though it’s not clear if the 2019 figure refers to the rent roll.