Midland files to foreclose on Cipriani, alleges $54.6M due
Midland Loan Services as special servicer for securitized loan bondholders of COMM 2014-CCRE19, filed to foreclose on a Cipriani USA’s loan with an original principal of $60 million, secured by commercial condos at 55 Wall Street and at 110 East 42nd Street.
The Wall Street Journal reported last week that the lender servicer was preparing foreclosure papers. In 2014, Cipriani obtained a loan with a principal of $60 million. The original interest rate was 5.67 percent, and the default rate adds 5 points to that, so 10.67 percent. The lender alleges Cipriani failed to make a payment for May 2020 or thereafter, which it says constitutes an event of default. The lender sent a letter dated November 1, 2021, stating the entire loan was due.
The lender alleges that Cipriani is not protected by state laws related to hardship claims. According to the complaint, “Borrower is not validly claiming hardship, and its statement under the hardship declaration of entitlement to hardship is not true… As the facts make clear, borrower is not the type of business the act was adopted to protect; accordingly, the basis upon which Borrower could assert hardship are inapplicable.”
Direct link to Acris document. link