Hirshmark Capital as senior and mezzanine lender on two Chinatown properties that have a total of $8.6 million in debt, seeks to force a sale of the properties owned for decades by the same family, according to a Chapter 11 bankruptcy petition filed yesterday in Manhattan.
The properties are 26 Bowery, a five-story, 11,565-square-foot mixed-use building with four residential units and two commercial units, and 2 Bowery, a five-story, 8,255-square-foot mixed-use building with six residential units and one commercial unit at the corner of Doyers Street. The Ng family has owned 2 Bowery since at least 1971, and 26 Bowery since 1991.
Hirshmark Capital in April 2019 provided an $8.2 million senior loan through the entity Double Bowery Funding LLC and a $400,000 mezzanine loan through the entity Bowery Mezz LLC to the three owners of 26 Bowery and 2 Bowery, Chouk Ng, Wilson Ng, and Steven Ng. Those loans were both in default, according to Hirshmark.
In September 2021, Hirshmark filed to foreclose on the $8.2 million senior loan, PincusCo reported at the time. Foreclosure court link. On March 22, 2022, the state Supreme Court judge appointed a receiver to manage the properties.
On March 31, 2022, Hirshmark says it exercised what it presented as its rights under the mezzanine agreement, which was to assume management under certain conditions. It did so and then appointed an independent party to manage the owner entities and to file the bankruptcy. The goal of the bankruptcy is the sale of the properties, according to the petition signed by Brian Ryniker, RK Consultants LLC, the newly appointed independent manager. The petition seeks the court’s approval to hire Rosewood Realty Group as the broker for the sale process.
According to the petition, “To satisfy the Debtors’ creditors, the Debtors intend to sell the 2 Bowery Property and 26 Bowery Property pursuant to the Bankruptcy Code to satisfy the claims their respective creditors.”
Direct link to Acris document. link