Gatsby Enterprises gets $24M refi for 3 LES hotels threatened by foreclosure

Gatsby Enterprises through the entity J&N Hospitality LLC (and others) as borrower signed a refi loan with lender Metropolitan Commercial Bank valued at $24 million for three hotel properties including the hotel building (H9) at 163 Orchard Street in Lower East Side, Manhattan, hotel building (H3) at 135 East Houston Street in Lower East Side, Manhattan, and hotel building (H3) at 136 Ludlow Street in Lower East Side, Manhattan. While the foreclosure cases have not been discontinued as of publication, it’s likely they will be.
The deal closed on April 15, 2025 and was recorded on April 18, 2025. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $34 million. The three properties have 46,407 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $517 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Gatsby Enterprises was Nader Ohebshalom . The signatory for Metropolitan Commercial Bank was Ross Dahmen and Dennis Graham. These properties were threatened by foreclosure complaints in early 2025.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Naleni Sanichar-Mohamed, individual owner. The three properties with a total of 46,407 square feet of built space generated revenue of $5.9 million per year or $127 per square foot.

Violations and lawsuits

The properties were involved in three lawsuits and zero bankruptcies over the past two years. The highest value suit was a $14.5 million commercial foreclosure concerning a loan filed on February 11, 2025, by JPMorgan Chase against Gatsby Enterprises and Nader Ohebshalom. In addition, according to city public data, the properties have received $8,950 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Lower East Side, The majority, or 51 percent of the 23.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Lower East Side has had very little sales volume relative to other neighborhoods with $202.8 million in sales volume in the last two years. For development, Lower East Side has had very little major development activity relative to other neighborhoods.It had 638,371 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On the tax block of 163 Orchard Street, PincusCo has identified the owners of three of the 22 commercial properties representing 92,504 square feet of the 291,400 square feet. The largest owner is New York City Housing Authority, followed by David Chan and then Asian Americans For Equality.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 291,400 square feet of built space are walkup buildings, with elevator buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Gatsby Enterprises owned at least 34 commercial properties with 1,025 residential units in New York City with 709,475 square feet and a city-determined market value of $222.5 million. (Market value is typically about 50% of actual value.) The portfolio has $247.2 million in debt, with top three lenders as Capital One, Amalgamated Bank, and Dime Community Bank respectively. Within the portfolio, the bulk, or 46 percent of the 709,475 square feet of built space are elevator properties, with walkup properties next occupying 45 percent of the space. They are all located in Manhattan.

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