NYC commercial pre-foreclosure suits rose last month to $181M

The dollar volume of commercial pre-foreclosure actions in New York City rose last month to $181 million, up from $110 million in January, but still below the 12-month average of $267 million, according to PincusCo data.
Lenders filed 17 pre-foreclosure actions last month, compared with 27 in the prior month, but the filings last month were on average larger loans.

The number of pre-foreclosure suits remains muted despite the continuing rise in interest rates that is increasing the cost of refinancing.
The largest pre-foreclosure suit  last month was for a loan with an original principal of $105 million, secured by a Thor Equities property, 597-599 Fifth Avenue in Midtown East.  The lender, through the special servicer, is seeking a receiver for the property. Thor has not filed response papers in the case.

In the second-largest pre-foreclosure action last month, a special servicer for a $25 million securitized loan on a Staten Island office building alleged that loan was in default. A special servicer filed a $25 million pre-foreclosure action against the owner of a 206,618-square-foot Staten Island office complex at 1150 South Avenue in Bloomfield developed by the late George Kaye, a well-known candy manufacturer. In that case, the borrower has not filed response papers.

The third largest action was Ray Yadidi of Sioni Capital, who sent an acceleration notice to the borrower, claiming $16.1 million was due on the loan with an original principal of $12.975 million, secured by 34-20 Linden Place in Flushing, Queens.

The other 14 loans totaled $35.6 million. Of the 17 loans overall, seven totaling $146 million were in Manhattan, seven totaling $11 million were in Brooklyn, two totaling $22 million were in Queens and one for $3 million was in the Bronx.