Klein Group consents to $7.9M Village retail foreclosure auction

The Klein Group and its lender represented by Wilmington Trust agreed through a signed stipulation that the leasehold on the retail at 659 Broadway would be sold at a foreclosure auction at the steps of the federal courthouse in Manhattan within approximately three months. The agreement signed July 26, 2023, mentions a referee but does not identify an individual by name.

The plaintiff, the commercial mortgage-backed security known as Series 2019-C49, through a representative, in January 2022 filed a pre-foreclosure case in New York’s Southern District in Manhattan, alleging the Klein Group’s affiliate 659 Broadway Retail Owner LLC defaulted on the leasehold mortgage for a 4,876-square-foot retail space at the cooperative building at 659 Broadway in Greenwich Village, Manhattan.

The Klein Group originally borrowed $5.8 million from Rialto Capital, which packaged the debt into the mortgage-backed security.

According to the stipulation, “to avoid the time, expense and uncertainty associated with further proceedings on the issue of damages, the parties have agreed to a compromise on the amount of the judgment of foreclosure and sale…in the amount of $7,936,861.82, with interest thereon in the amount of $1,609.50 per diem from May 25, 2023, until the date of entry of this judgment.” Stipulation DOCUMENT
Case LINK

The retail is at the base of a large co-op building with 243 residential units in Greenwich Village that has 196,920 square feet of built space according to a PincusCo analysis of city data. The parcel has five buildings with frontage of 95 feet and is 200 feet deep with a total lot size of 30,999 square feet. The lot is irregular. The property is in the NoHo Historic District.

Direct link to the property’s ACRIS page