Lender filed to foreclose on 85-unit rental in Flatbush with $11.25M debt

An anonymous lender filed to foreclose on a loan with an original principal of $11.25 million that is secured by Daniel Reifer’s RMC Equities’ 85-unit rental building at 555 Ocean Avenue in Flatbush, Brooklyn. Reifer recently lost a Harlem portfolio after he put the assets into a chapter 7 bankruptcy process in 2020. Investor Avi Dishi purchased those buildings for $9.8 million, last year.

Daniel Reifer’s father Stanley Reifer acquired the Flatbush building in 1984, and with a $1.78 million construction loan from Citibank that year, rehabilitated the 85-unit 103,472-square-foot, six-story structure, originally built in approximately 1911, according to city records.

Daniel Reifer took title in 2007 from his father in a deal valued at $7.7 million. The debt increased over the years to $11.25 million, which in 2018 was provided by Ridgewood Savings Bank.

According to the complaint, “On or about December 13, 2021, the Defendant-Borrower and Ridgewood executed a Modification Agreement, amending and modifying certain of the terms of the mortgage to provide payment relief for the Defendant-Borrower due to the COVID-19 pandemic.”

The current lender, registered at the address of the Camporeale Law Group, acquired the loan on June 27, 2022. On June 28, the new lender accelerated the loan, which is now liable for a 5% late fee and a 24% default interest rate. The acceleration letter dated June 28 said, in part, “Please take notice that Borrower’s failure to pay the sums due under the terms of the note and modification agreement on or before January 15, 2022, constitutes an Event of Default (as defined in the loan documents). Due to the aforesaid Event of Default, Ocean Lender hereby elects to accelerate all sums due under the mortgage loan.” LINK