Owners sue lender to block Brooklyn UCC auction of Deal, NJ mansion valued at $10M

109 Jerome Avenue Deal, NJ (Credit - Google)

109 Jerome Avenue Deal, NJ (Credit - Google)

Brooklyn residents Joseph and Barbara Safdieh filed a complaint in Brooklyn State Supreme Court seeking to block a September 14, 2023 UCC foreclosure auction related to a Deal, New Jersey mansion alleged to be worth as much as $10 million. The UCC auction of an ownership interest in the property is to be held on the steps of the Kings County Courthouse next week. Case LINK
The 8,666-square-foot Deal residence at 109 Jerome Avenue was the subject of a bankruptcy filing the Safdiehs made in April 2022 in New Jersey, which was discontinued the next month. Later that year, in November, the Safdiehs borrowed $6 million from Lending Assets LLC, an affiliate of Tower Fund Capital. The borrowers fell behind on their $70,000 monthly payments, according to the court filings.

Deal, New Jersey is a community with large homes along the Atlantic beachfront that is home to many Brooklyn real estate investors and their families, including Jeff Sutton, Joseph Sitt, the Adjmis, the Cayres and others.

The Safdiehs sued yesterday, seeking to vacate the judgment entered in June 22, 2022 in case number 518241/2023, “on the grounds that it was entered on the basis of knowingly false, misleading and deceptive representations made to the Kings County Clerk.”

The borrowers allege the lender, “misleadingly and/or deceptively seeks to circumvent the requirement imposed by [New York State law] which prohibits a judgment by confession against a non-New York State resident,” which, in this instance, is the owner entity of the home, 109 Jerome Ave LLC.

According to the court filing, Lending Assets LLC loaned $6 million to the Safdiehs’ 109 Jerome Ave LLC on November 15, 2022, in a loan structured as interest only payments of $70,000 monthly until maturity on May 31, 2023, but the borrowers “defaulted on their obligations under the promissory note on March 22, 2023, and Borrower further defaulted when it failed to pay $35,000 of the $70,000 interest payment due April 1, 2023, and failed to pay the $70,000 monthly interest payment due May 1, 2023,” and did not repay the balance of the loan.

 

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