LoanCore files 3 pre-foreclosures totaling $72.6M against single borrower

LoanCore Capital filed three pre-foreclosure actions yesterday in New York State Supreme Court in Manhattan alleging three properties with a total of $72.6 million in debt were in maturity defaults. The properties, 251 West 39th Street and 580 Eighth Avenue in the Garment District, and 36 East 20th Street in Flatiron District, are owned by affiliates of the borrower UNG Realty Co. The lender filed the actions on March 4, 2026.

The allegations are versions of this: “Pursuant to the terms of the Loan Documents, by August 9, 2025 (the “Maturity Date”), Borrowers shall pay to Lender the entire outstanding principal balance… Borrowers are in default under the Loan Documents for, among other things, their failure to pay the balance of principal on the Maturity Date.”

Case 251 West 39th Street LINK
Case 580 Eighth Avenue LINK
Case 36 East 20th Street LINK

The properties

The office building 251 West 39th Street in Garment District has 108,025 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 73 feet and is 98 feet deep with a total lot size of 7,258 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $12.3 million. The most recent loan totaled $44.6 million and was provided by LoanCore Capital on September 11, 2020.

The office building 580 Eighth Avenue in the Garment District has 72,649 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 52 feet and is 64 feet deep with a total lot size of 3,331 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $10.4 million. The most recent loan totaled $31.5 million and was provided by LoanCore Capital on September 11, 2020.

The office building 36 East 20th Street in Flatiron District has 27,446 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 92 feet deep with a total lot size of 3,680 square feet. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $10.1 million.

Violations and lawsuits

According to city public data, the property has received four DOB violations and $4,000 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 11.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 23 commercial properties representing 826,971 square feet of the 1,803,020 square feet. The largest owner is Adler Group, followed by Gotham Assets and then Hyang Ja Lee. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that UNG Realty Co. owned at least three commercial properties in New York City with 208,120 square feet and a city-determined market value of $27.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are office properties. They are all located in Manhattan.

The surrounding

Within a 400-foot radius of 255 West 39 Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months. One of those four items was a sale which Gotham Assets bought the 88,100-square-foot, 15-unit office building (O6) on 225 West 39th Street for $22.2 million from Walter & Samuels on March 18, 2024. Of those four items, three were loans above $5 million totaling $206 million. The most recent of the three was OTO Development in which borrowed $96 million from Fifth Third Bank secured by the 120,566-square-foot, 290-unit hotel (H2) on 252 West 40th Street on September 3, 2025.

Direct link to the property’s 251 West 39th Street ACRIS page.
Direct link to the property’s 580 Eighth Avenue ACRIS page.
Direct link to the property’s 36 East 20th Street ACRIS page.