Lender Invictus sues to foreclose on CW Realty’s $78M Williamsburg construction loan

By Adam Pincus

The lender for a $77.7 million construction loan given to Cheskie Weisz’s CW Realty Group for the construction of the 96-unit new rental at 187 Kent Avenue in Williamsburg sued to foreclose on the loan, according to a filing July 19 in Brooklyn State Supreme Court.

Invictus Real Estate Partners, based in Scarsdale, bought the loan on July 19, 2021, the same day it filed the suit. The prior lender declared the loan in default in 2019 and sent a notice that the entire loan was due, in April 2020. Invictus is led by co-partners Eric Scheffler and Christopher Pardo.

CW Realty has not yet filed response papers. Please note that court filings are the positions of one party and are not necessarily accurate or complete.

Lender Prophet Capital Asset Management in December 2017 provided the financing, including a $35.1 million land loan, a $29.25 million building loan and a $13.6 million project loan.

The city issued an initial temporary certificate of occupancy in September 2020 for the 82,994-square-foot building with 96 units.

According to the complaint, the principal plus interest and fees is calculated as a total payoff amount of $104,897,499.30. The complaint says, “Mortgage Borrower has failed to comply with the Mortgage Loan Documents, and such failures constitute Events of Default under the Mortgage Loan Documents. Specifically, Prophet served Mortgage Borrower and the Guarantors with a notice of default, dated December 2, 2019 (the “Notice of Default”) notifying them that various Events of Default had occurred and were continuing, including, but not limited to, the Mortgage Borrower’s failure to substantially complete certain aspects of improvements by November 30, 2019… Accordingly, Prophet served Mortgage Borrower and the Guarantors with a Notice of Maturity, Default and Demand, dated April 1, 2020 (the “Notice of Maturity Default”).”