Mack files $116M pre-foreclosure on Robert Gans portfolio, sixth-largest filing in two years

535 West 27th Street (Credit: Google)
Mack Real Estate Credit Strategies filed a $116 million pre-foreclosure action against lumber and strip-club owner Robert Gans and his owner entities, according to a filing from New York State Supreme Court yesterday. This package of properties is subject to another lawsuit filed by an alleged joint venture partner which claims it now controls the portfolio.
This Mack filing is the sixth-largest pre-foreclosure filing over the past two years. The largest was for $650 million, which Natixis filed over the ongoing litigation at 701 Seventh Avenue, also known as 20 Times Square. The second-largest was a $285 million action against Kushner Companies to foreclose on its 229 West 43rd Street retail assets.
The Mack loan is secured by a 1 million-plus square foot portfolio of 11 commercial tax lots in Manhattan and Queens. Mack and the Bluestone Group in 2018 led a $148 million financing which included $130.24 million in senior secured debt and mezzanine financing. The senior debt was later reduced to $116 million. Bluestone still holds mezzanine debt, according to a source familiar with the current financing.
The properties include 533 West 27th Street and 175 Spring Street and 616-624 11th Avenue.
-Adam Pincus