NYC pre-foreclosures surge in May to $718M, twice April’s total
340 Madison Avenue (Credit - Google)
The dollar volume of New York City commercial pre-foreclosure cases above $1 million rose to its highest level in nearly a year, totaling $717.6 million, PincusCo data shows. That was more than double the total for April, which was $347 million. And the high level was not simply one or two large cases skewing the data.
There were five loans or portfolios with debt $30 million or more that were hit with pre-foreclosure filings last month. Of those five cases, four were securitized loans.
The highest dollar value suit was the $315 million filing MassMutual made at RXR Realty’s 340 Madison Avenue. The next was the $130 million action against Cohen Brothers Realty on behalf of Series 2015-GC34 and LNR Partners, then the $70 million case Comm 2014-CCRE15 and Rialto Capital Advisors filed against APF Properties. Next were ten cases totaling $47.9 million filed by Freddie Mac and Sabal Capital Partners, on behalf of the securitized bondholders of Series 2019-SB63 against Mack Real Estate Group, and finally a $30 million suit against Jenel Management on behalf of Series 2014-GC19 and LNR Partners.
Top five property types for May pre-foreclosure filings
| wdt_ID | Building type | Dollar volume | No. of cases |
|---|---|---|---|
| 1 | office | 515,000,000 | 3 |
| 2 | walkup | 89,197,000 | 17 |
| 3 | retail | 62,483,066 | 2 |
| 4 | elevator | 36,646,000 | 5 |
| 5 | industrial | 15,898,236 | 4 |
Not only was this a large increase over the prior month, but the dollar volume was the second highest month over the past two years, only behind the $943 million filed in October 2023, which included the $750 million loan pre-foreclosure on the fee position of Maefield Development‘s project at 701 Seventh Avenue. That loan was quickly taken over by the lender.