Merchants Bank of Indiana files $36.8M pre-foreclosure in Midtown West

Merchants Bank of Indiana filed a $36.8 million pre-foreclosure action against an affiliate of Abraham Leifer’s Aview Equities, which owns the 28-unit mixed-use building, 19 West 55th Street in Midtown West.

Abraham Leifer’s Aview Equities, through the entity 19 W 55 LLC, bought the building in 2017 for $50 million from Solly Assa, which followed a settlement Assa and the City of New York signed related to allegations of operating illegal hotel units in the building.

A team as Serhant LLC is marketing the property for $42 million, saying it is mostly empty: “It is available fully gutted and completely vacant with the exception of three rent-stabilized units.”

Merchants Bank of Indiana gave the $36.76 million loan in December 2019, and following three forbearance agreements, the bank filed this action to commence foreclosure. According to the complaint, the Allure Group is a tenant in the building, but there is no record of that online, and the listing states the commercial portion is vacant. The nine-story, 34,454-square-foot mixed-use building has 28 apartments and two commercial units on a lot that is 50 feed wide by 100 feet deep.

A website called Hindenberg Research reported on a 2019 plan to sell ownership stakes in the building through tokens.