Hirshmark files $6.5M pre-foreclosure on Crown Heights 49-unit dev site

Hirshmark Capital through the entity 967 Nostrand Ave Funding LLC filed a $6.5 million pre-foreclosure suit against Colin Cohen through the entity Minortico Realty Corp. The owner filed plans in 2019 for a 73,117-square foot mixed-use building with 49 units, commercial and community facility space. Those plans have been partially approved by the city’s Department of Buildings, but not yet been permitted.

Cohen bought the one-story, 10,090-square-foot commercial building at 967 Nostrand Avenue in Crown Heights, Brooklyn, in April 1986 for $210,000. The building was demolished in 2019.

In September 2018, Cohen borrowed $6.5 million from Hirshmark, the first debt on the building since a small purchase money mortgage from 1986.

Following a loan extension, the debt determined to be due October 1, 2021. Hirshmark says in the complaint that, “On June 1, 2021, Minortico failed to make the monthly payment under the terms of the Loan, the Extension Agreement and failed to make the monthly payments thereafter. Accordingly, [the] last payment under the terms of the Note was May 11, 2021 for the May 1, 2021 payment.” Hirshmark then sent an acceleration notice on August 10, 2021.


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