Marathon sues Churchill over $52M Penn Plaza loan
257-263 West 34th Street (Credit: Google)
A Marathon Asset Management fund filed yesterday to foreclose on a construction completion loan with an original principal of $52 million provided in June 2019 and secured by the 35,111-square-foot, six-story commercial building owned by Churchill Real Estate at 257-263 West 34th Street, between Seventh and Eighth avenues.
The city’s Department of Buildings issued an initial temporary certificate of occupancy on October 8, 2019.
The complaint, filed yesterday in New York State Supreme Court, alleges Churchill has not paid January real estate taxes or made recent loan payments.
Court filings are the positions of one party and are not necessarily accurate or complete. Churchill has not yet filed response papers.
According to the complaint, this is a “foreclosure on three (3) mortgages in the original aggregate amount of $52 million that are encumbering real property located at 257-263 W 34th Street, New York, New York, following payment defaults by Mortgage Borrower that occurred in May, June and July 2021, and are continuing… Marathon Issuer served Mortgage Borrower with a notice of default, acceleration and reservation of rights, dated June 24, 2021 (the “Notice of Default”), notifying Mortgage Borrower that various Events of Default had occurred and were continuing, including, but not limited to, the Mortgage Borrower’s failure to pay the monthly interest payments due on May 11, 2021 and June 11, 2021, pursuant to Section 3.7(a) of the Loan Agreements, which constituted an Event of Default under Section 10.1(a) of the Loan Agreements… Total outstanding as of September 1, 2021, $52,648,322.37.”
Direct link to Acris document. link