Foreclosure auction set for HFZ Capital retail with $16.7M loan at Chelsea condo project

Two retail condominium units with $16.7 million in original principal debt owned by Ziel Feldman’s HFZ Capital Group that are at the base of the 35-unit condominium development at 505 West 19th Street in Chelsea are set to be sold at an auction on January 10, 2024, at the New York County Courthouse, according to a notice of sale dated December 8, 2023.

HFZ Capital Group partnered with Carlyle Group to develop the project, but in November 2016 they divided up the remainder of the unsold residential and commercial units, with Carlyle Group buying four condo units in a $44.1 million deed transaction and HFZ Capital Group acquiring full ownership of the retail units in a $10.3 million, entity-level transaction.

In April 2017, HFZ Capital Group borrowed $16.7 million from Pennsylvania-based Malvern Bank, at the time known as Malvern Federal Savings Bank. In July 2023, Malvern Bank was acquired by First Bank.

Malvern Bank filed a pre-foreclosure action, 850119/2022, in June 2022, which PincusCo reported at the time.

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