Lender files $98M pre-foreclosure at 25 one-time Emerald Equity rentals

A trustee managing seven loans with an original principal of $98.1 million in debt filed seven pre-foreclosure actions in federal court that were given to Emerald Equity Group and secured by 25 rental buildings in the Bronx with a total of 663 units. Sabal Capital originated the loans in 2019 and 2020.

The Real Deal reported in September that Morningstar said the loans in this portfolio were in default.

The seven complaints were filed in U.S. District Court in Manhattan. The properties include 1202 Spofford Avenue, 440 East 187th Street, 441 East 187th Street, 1475 Fulton Avenue, 1235 Morris Avenue, 2224 Lyon Avenue, 109 West 225th Street, 1103-1105 Sheridan Avenue and 1083 Sheridan Avenue.

This pre-foreclosure action follows another one filed yesterday with $11.9 million in debt.

A person familiar with Emerald Equity Group’s holdings told PincusCo that Emerald Equity no longer controls these and other rent-regulated assets in New York City.

“Currently [the] collective efforts on both borrower and lender is to get the properties back to the lender in a most tax-efficient manner for both sides,” according to the source.

Direct link to the property’s ACRIS page.