Foreclosure sale date set for SoHo retail with $28M judgment, appeal initiated

A New York State Supreme Court-appointed referee set a date next month for a foreclosure auction to sell a retail and residential mixed-use property at 63 Spring Street in SoHo, Manhattan, that has a judgment of $28.1 million, according to the notice of sale published last week. The property is owned by JTRE. The firm filed a notice of appeal July 2, claiming the judgment of foreclosure and sale handed down in June was based on a flawed process.

Referee Elaine Shay scheduled the auction for August 13, 2025, at the New York County Courthouse.

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

Case 850042/2022 LINK

Appeal Case 2025-04359 LINK

Bondholders through the special servicer LNR Partners filed a lawsuit seeking to foreclose on a loan with an original principal of $18.5 million secured by JTRE’s 63 Spring Lafayette, LLC, which owns 63 Spring Street, a five-story mixed-use building with a total of 5,140 square feet, four residential units and two commercial units. PincusCo reported on the pre-foreclosure action in February 2022.

The triangle-shaped lot is on the corner of Spring Street and Lafayette Street in Soho.

According to the complaint, “Beginning with the Payment Date for April 2020, Borrower failed to pay to Lender within five days or at any other time the Monthly Payments and the Escrow Deposits required by the Loan Agreement. Borrower’s failure to make the required monthly payments constitutes an Event of Default under the Loan Documents. As of January 1, 2022, there was due and owing on the Loan without defense, deduction, offset, recoupment or counterclaim the total amount of $25,431,320.42, itemized as follows…”

JTRE’s Jack Terzi, with a partner, bought the building in 2014 for $15 million, and then Terzi in 2017 bought out partner Arba Group for $10.5 million, and then in 2019 upped the debt to $18.5 million.

The notice of appeal filed this month with the Appellate Division, 1st Department, alleges that the plaintiff’s summary judgment motion was deficient due to lack of proper evidence. Specifically, the supporting affidavit was based on unidentified business records not attached to the affidavit, rendering the claims hearsay without probative value. Additionally, the required allonge was not properly affixed to the documentation.

The property

The mixed-use building with 4 residential units in SoHo has 5,140 square feet of built space and 4,009 square feet of additional air rights for a total buildable of 9,155 square feet according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 77 feet deep with a total lot size of 1,831 square feet. The zoning is M1-5/R7D which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 4.2 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $4 million.

Prior sales and revenue

This property was sold for $15 million on March 19, 2014.

The 5,140-square-foot property generated revenue of $282,854 or $55 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received three housing violations and $5,575 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has near average sales volume among other neighborhoods with $646.3 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, SoHo has near average amount of major developments among other neighborhoods and is the 31st highest in Manhattan. It had 402,216 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 15 commercial properties representing 238,293 square feet of the 268,509 square feet. The largest owner is Greystone Management, followed by Javeri Capital and then JTRE. There are no active new building construction projects on this tax block.

The owners according to the Department of Housing Preservation and Development includes Jordan Rose, head officer and Jacklene Chesler, officer. The business entity is 63 Spring Lafayette LLC.

The surrounding

Within a 400-foot radius of 63 Spring Street, PincusCo identified 12 commercial real estate items of interests occurred over the past 24 months. Of those 12 items, four were sales above $5 million totaling $121.3 million. The most recent of the four was MBf Holdings Berhad which bought the 25,050-square-foot, 21-unit office building (O5) on 540 Broadway for $30 million from Albert Hazout and David Hazout on June 20, 2025. Of those 12 items, eight were loans above $5 million totaling $219.1 million. The most recent of the eight was Nicholas J. Argyropoulos in which borrowed $7.7 million from Arbor Realty Trust secured by the 6,510-square-foot, 10-unit rental (C7) on 224 Lafayette Street on June 20, 2025.

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