NYC pre-foreclosures fall in January to $886M, down from $1.37B in December

The dollar volume of New York City commercial pre-foreclosure filings declined to $886 million from a multi-year high of $1.37 billion reached in December 2024. Despite the fall in dollar volume, the number of cases rose to 38 last month compared with 25 in December, according to a PincusCo analysis of state and federal commercial pre-foreclosure cases for loans above $1 million.

In both January and December, one large case formed a significant portion of the dollar volume. In January, the largest case was for $506.3 million held by a securitized trust, and secured by A&E Real Estate Holdings’ Upper Manhattan portfolio that includes Riverton Square. After that, the next highest case was for $74 million secured by a Walter & Samuels’s building.

In December the three largest cases were securitized lenders filings actions against borrowers. The largest was the special servicer for a $670 million loan provided to RXR Realty and secured by 230 Park Avenue; while the second largest was for a $270 million loan secured by RFR Realty’s 285 Madison Avenue; and the third largest was $180 million secured by RFR Realty’s 17 State Street in the Financial District. The servicer for that third pre-foreclosure, against RFR Holding at 17 State Street, withdrew the action last month.

After those blockbuster actions, the next largest filed in December was $85 million.