January foreclosure auction set for 3 East Harlem rentals with $69M judgment

The referee in a New York State Supreme Court foreclosure case set January 21, 2026, as the date to auction three East Harlem rental buildings owned by HAP Investments, at 2211 Third Avenue, 338 Second Avenue and 329 Pleasant Avenue, that have a judgment of $69 million, a notice of sale published on December 24, 2025, showed.

Ladder Capital’s wholly owned insurance company, Tuebor REIT Sub LLC, filed a pre-foreclosure action in April 2024, alleging HAP Investments’ properties were in technical defaults.

Case 850117/2024 LINK

HAP Investments signed the loan in December 2021 with lender Allegiant Real Estate Capital, which immediately assigned the loan to Ladder Capital affiliates.
According to the complaint, “by letter dated December 29, 2023 (the “Notice of Acceleration”), Borrowers have defaulted under the terms of the Loan Documents by… inaccurately stating the total accounts payable by Borrowers in financial statements…accruing $1,200,045.77 in accounts payable that are more than 60 days past due… failing to purchase a replacement Interest Rate Cap Agreement.”

The properties

The condo building at 2211 Third Avenue with 108 residential units in East Harlem has 145,963 square feet of built space and 48,744 square feet of additional air rights for a total buildable of 176,610 square feet according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 100 feet deep with a total lot size of 17,661 square feet. The zoning is C4-6 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing.

HAP Investments submitted a new building construction project for a 108-unit, 107,964 square-foot residential (R-2) building at 2211 Third Avenue. The plan was filed on July 29, 2014 and was permitted on January 20, 2016. It calls for the construction of a 116-foot tall, 11-story building and was filed with the New York City Department of Buildings under job number 122082030.

The elevator building at 2338 Second Avenue with 30 residential units in East Harlem has 23,913 square feet of built space and 3,839 square feet of additional air rights for a total buildable of 27,763 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 3,692 square feet. The lot is irregular. The zoning is R9A which allows for up to 7.52 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.7 million. The most recent loan totaled $63.6 million and was provided by Allegiant Real Estate Capital on December 6, 2021.

The elevator building at 329 Pleasant Avenye with 20 residential units in East Harlem has 17,089 square feet of built space and 348 square feet of additional air rights for a total buildable of 17,444 square feet according to a PincusCo analysis of city data. The parcel has frontage of 30 feet and is 143 feet deep with a total lot size of 4,361 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2019 and expires in 2034. The city-designated market value for the property in 2022 is $2.1 million. The most recent loan totaled $63.6 million and was provided by Allegiant Real Estate Capital on December 6, 2021.

Direct link to the property’s 2211 Third Avenue RES ACRIS page
Direct link to the property’s 2211 Third Avenue RET1 ACRIS page
Direct link to the property’s 2211 Third Avenue RET2 ACRIS page
Direct link to the property’s 2211 Third Avenue CFU ACRIS page
Direct link to the property’s 2211 Third Avenue PU ACRIS page
Direct link to the property’s 329 Pleasant Avenye ACRIS page
Direct link to the property’s 2338 Second Avenue ACRIS page