Lender Global Bank filed a $10.17 million pre-foreclosure action against the owners of two mixed-use buildings in Chinatown, Manhattan, 43 Mott Street and 45 Mott Street that have a combined 27 residential units. LINK
The borrower entities 43 Mott Realty Owner LLC and Tai Cheung Realty Inc. are led by Kevin Ye and Ping Cheung, who are described as guarantors in the complaint. Global Bank made the loan in 2020.
Court filings represent the position of one party and are not necessarily accurate or complete.
A subordinate lender, NewBank, filed a pre-foreclosure action in 2022 (850034/2022) alleging a default in a $500,000 loan secured by the properties, and the case remains open.
43 Mott Street is a walkup building with 16 residential units that has 10,700 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 94 feet deep with a total lot size of 2,353 square feet. The lot is irregular. The zoning is C6-1 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $3.4 million.
45 Mott Street is a walkup building with 11 residential units that has 7,946 square feet of built space and 237 square feet of additional air rights for a total buildable of 8,183 square feet according to a PincusCo analysis of city data. The parcel has two buildings with frontage of 25 feet and is 94 feet deep with a total lot size of 2,379 square feet. The lot is irregular. The zoning is C6-1 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $3 million.
According to the complaint, the “Consolidated Mortgage… dated September 16, 2020 made by Mortgagors to Plaintiff in the aggregate principal sum of $10,170,000… Defendants, or some of them, have failed to comply with the terms, covenants and conditions of the above-described mortgages, as consolidated, in that… that they have, inter alia, placed a subordinate mortgage as against the Mortgaged Premises, have defaulted in the payment of said subordinate mortgage which has resulted in foreclosure proceedings being commenced by such subordinate mortgage holder which foreclosure proceedings are still pending… as a result of Obligors’ failure to cure their defaults, payment of the entire mortgage indebtedness was accelerated and interest at the default rate was imposed by letter dated May 19, 2022… Forbearance Agreement, dated May 25th, 2022…The Forbearance Period has since expired and the Obligors have not cured their defaults… [now owing is] the principal amount of $9,928,907, together with interest at the default rate of 23% per annum from May 19, 2022.”
Within a 400-foot radius of 43 Mott Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months. It was a sale which Lin Huang bought the 6,975-square-foot, six-unit mixed-use building (K4) on 77 Bayard Street for $7.5 million from Roland Leong on July 26, 2023.