Foreclosure auction set for 56-unit Mt. Eden rental with $9.3M judgment

The referee in a foreclosure case New York Community Bank set May 13, 2024. as the auction date for the 56-unit rental building at 106 Marcy Street, in Mt. Eden, the Bronx. The auction is scheduled for a little more than two years since the bank filed the case, in April 2022.

The property has been owned by the same family for decades. An individual named Hyman Schneider bought the property from Eastern Savings Bank in 1978 for $20,625, according to a PincusCo analysis of recording tax. Then in 1983, Hyman Schneider assigned the property through a no-consideration transfer to Jeffrey Schneider’s entity Remie Realty Corp.

Jeffrey Schneider borrowed $7 million from New York Community Bank in November 2018. The loans fell into default, and then in February 2022, Jeffrey Schneider, the guarantor, died. In April 2022, the bank filed the pre-foreclosure action, 806040/2022E. SUIT

The pre-foreclosure action noted alleged elements of default, including the death of the guarantor.
The bank alleged that, “Borrower is in default under the Loan Documents for, among other things, its failure to make timely monthly payments under the Loan Documents since at least October 1, 2021, and its failure to timely pay real estate taxes and other municipal charges for the Mortgaged Property (the “Payment Defaults”). Borrower has been in default since at least October 15, 2021. Borrower is in default under the Loan Documents due to, among other things, the death of Guarantor [Jeffrey E. Schneider] on February 6, 2022. By letters dated October 6, 2021, November 17, 2021 and January 20, 2022, Lender notified Borrower and Guarantor of the Payment Defaults under the Loan Documents and demanded cure by a date certain, which did not occur.”

The property

The walkup building with 56 residential units in Mt Eden has 55,084 square feet of built space and 26,014 square feet of additional air rights for a total buildable of 81,143 square feet according to a PincusCo analysis of city data. The parcel has frontage of 138 feet and is 95 feet deep with a total lot size of 13,479 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.4 million.

Prior sales and revenue

The 55,084-square-foot property generated revenue of $730,288 or $13 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received nine DOB violations, 63 housing violations, and $50 in OATH penalties in the last year.

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $7 million commercial foreclosure concerning a loan filed on April 19, 2022, by New York Community Bank against Cynthia Schneider and Jeffrey E. Schneider (deceased).

The neighborhood

In Mt Eden, The majority, or 51 percent of the 10.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Mt Eden has near average sales volume among other neighborhoods with $89.6 million in sales volume in the last two years and is the 12th highest in Bronx. For development, Mt Eden has near average amount of major developments among other neighborhoods and is the 10th highest in Bronx. It had 704,175 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 377,918 square feet of the 702,931 square feet. The largest owner is Kraus Organization, followed by Lemle & Wolfe and then Lemle & Wolff. There are no active new building construction projects on this tax block.

The owner

The owners according to the Department of Housing Preservation and Development includes Jacob Eisenstein, head officer, The business entities are David Eisenstein Real Estate and Remie Realty.

The surrounding

Within a 400-foot radius of 108 Marcy Place, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a permit application filed on March 30, 2022 for the $451,248 renovation of 8,651-square-foot residential (R-2) building with 25 residential units at 135 Marcy Place.

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