Maverick sues Chetrit for $106M, Thor for $25.5M, Yoel Goldman for $2.3M

Private lender Maverick Real Estate Partners filed three unrelated legal actions Monday against borrowers the Chetrit Group, Thor Equities and Yoel Goldman, totaling $134 million. Maverick is the most active note buyer in New York City, according to PincusCo data.

Maverick sues Chetrit for $106M over unfinished hotel: In the largest, Maverick filed a complaint seeking $106.4 million from the Chetrit Group naming Meyer Chetrit individually, related to the delayed completion of a 300-room hotel at 255 West 34th Street in the Garment District. The original loan was signed in January 2020, just before the pandemic halted construction, and battered the hotel industry. The total now due on the debt is $106.4 million, according to the complaint. This is not a pre-foreclosure action, it is suit to enforce a contract.

Court filings are the positions of one party and are not necessarily accurate or complete. The Chetrit Group is one of the city’s largest property owners, with vast multifamily and commercial holdings. The PincusCo database currently indicates that Chetrit Group owned at least 34 commercial properties with 4,598,424 square feet, 2,288 residential units. The portfolio has $1.7 billion in debt, with top three lenders as Starwood Mortgage Capital and the Bank of Montreal. Within the portfolio, the bulk, or 49 percent of the 4,598,424 square feet of built space are elevator properties, with office properties next occupying 28 percent of the space. The bulk, or 69 percent of the built space, is in Manhattan, with Queens next at 26 percent of the space.

The complaint alleges the developer has not completed the project, is not continuing to fund it and has several defaults on the loans including accruing mechanic’s liens and a maturity default.
Maverick Real Estate Partners, which bought the a senior loan, a senior mezzanine loan and a junior mezzanine loan totaling $110,516,429 from Arbor Realty Trust in May 2022, filed this action seeking to compel Meyer Chetrit and the Chetrit Group, which own the property, to pay for and finish the construction of the project, or alternately, to pay $106.4 million determined to be the “project completion amount.”

The Commercial Observer first reported this filing.

According to the complaint, “Multiple events of default have occurred under the under the Junior Mezz Loan Documents, including, without limitation, the failure by the Junior Mezz Borrower to complete the Project by the Completion Date (as defined in the Junior Mezz Loan Agreement) and the failure by the Junior Mezz Borrower to pay the full amount due under the Junior Mezz Loan on or before the Maturity Date.

“On May 27, 2022, the Plaintiff delivered to the Defendants a demand for payment of the Junior Mezz Loan… Plaintiff agreed to temporarily forbear from enforcing certain of its rights until October 30, 2022 pursuant to a Forbearance Agreement, dated as of July 1, 2022 (the “Forbearance Agreement”).

“However, as a result of the Defendants’ continuing events of default, the failure of Defendants to perform under the Forbearance Agreement, and the expiration of the forbearance period due to the passage of time, the Plaintiff’s agreement to forbear has terminated. On November 17, 2022, the Plaintiff delivered to the Guarantor (i) a written demand that the Guarantor, among other things, assume responsibility for the Project, pay all costs and expenses related to the Project, complete the Project, and pay all payments required under the Junior Mezz Completion Guaranty (the “Guaranty Demand Letter”), and (ii) a separate written demand that the Guarantor pay to the Plaintiff, within ten (10) days following written demand, the sum of $106,367,012 which amount has been determined in good faith to be the Project Completion Amount (the “Liquidated Damages Demand Letter”).

“Guarantor is a guarantor under three separate loans related to the Project (as defined in the Junior Mezz Loan Agreement): a mortgage loan, a senior mezzanine loan, and the Junior Mezz Loan… On January 28, 2020, the Mortgage Borrower borrowed the principal amount of $71,017,817.94 (the “Mortgage Loan”) from Arbor Realty SR, Inc. Maturity Date (as defined in the Mortgage Maturity Date (as defined in the Mortgage Loan Agreement) was extended from January 27, 2022 to April 27, 2022, aLoan Agreement) was extended from January 27, 2022 to April 27, 2022…

“On May 11, 2022, JPM Funding [Arbor Realty Trust] duly assigned to Penn District Hotel LLC [Maverick]…[Maverick noticed Chetrit of the loan default] By letter dated May 27, 2022 (the “Mortgage Default Letter”)…On January 28, 2020, the Senior Mezz Borrower borrowed the principal amount of $19,523,465.52 (the “Senior Mezz Loan”) from JPM Funding…On May 11, 2022, JPM Funding duly assigned to Penn Hotel Senior LLC…By letter dated May 27, 2022 (the “Senior Mezz Default Letter”)… On January 28, 2020, the Junior Mezz Borrower borrowed the principal amount of $19,975,146.42 (i.e., the Junior Mezz Loan) from Arbor Realty Participation, LLC…[there exist mechanic’s liens]… The Junior Mezz Borrower and the Guarantor failed to complete the Project by the Completion Date (i.e., January 1, 2022). LINK

Direct link to the property’s ACRIS page and link to DOB NOW portal.

Maverick filed pre-foreclosure against Thor Equities over $25.5M loan: Maverick filed the suit Monday, two months after it bought the notes November 9, 2022, seeking a foreclosure and sale of the retail and office property, 446 West 14th Street in the Meatpacking District. PincusCo reported on Maverick’s purchase of the loan last month. The complaint alleges Joseph Sitt, founder of Thor, signed certain loan guarantees. According to the complaint, the loan is in a maturity default, following “the extension of the maturity date from October 9, 2021 (the “Original Maturity Date”) to October 9, 2022 (the “Extended Maturity Date”).” The Real Deal reported on the pre-foreclosure action yesterday. LINK

Maverick files $2.27M pre-foreclosure against Yoel Goldman: Maverick alleges Yoel Goldman is in default on a $2.27 million debt secured by the
65 Kent Avenue in Williamsburg. The mixed-use building with 2 residential units in Williamsburg has 5,900 square feet of built space according to a PincusCo analysis of city data. The property is owned by All Year Management. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $814,000. LINK