Parkview Financial files $9.4M pre-foreclosure at 22-unit project in East Harlem

Parkview Financial REIT filed a pre-foreclosure against the owners of a 22-unit residential development at 308 East 106th Street and 310 East 106th Street in East Harlem that secure a loan with an original principal of $9.38 million provided in 2021.
Marc Salih purchased the two parcels at a city auction, for $62,000 in 1984, and over the years the city recorded a series of tax liens on the property.
Then in 2016, Salih Marc submitted a new building construction project for a 22-unit, 20,160 square-foot residential (R-2) building at the site. The plan was filed with the New York City Department of Buildings on December 7, 2016 under job number 122965416 and was permitted on October 27, 2017. It calls for the construction of an eight-story building. He borrowed at least $2 million in 2016 and 2017, then in 2021 Parkview Financial paid off the older loans and provided the $9.38 million.
Court filings represent the position of one party and are not necessarily accurate or complete.
According to the complaint, “Borrower did not comply with the terms and conditions of the Loan Documents, having failed to pay the principal balance of the Loans, together with interest and other charges due, by September 1, 2022, the Maturity Date of each of the Loans (the “Loan Maturity Defaults”).” The lender sent a letter dated November 15, 2022, demanding full payment.

The property

The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $459,000. The most recent loan totaled $9.38 million and was provided by Parkview Financial on March 30, 2021.

Violations and lawsuits

According to city public data, the property has received $600 in OATH penalties in the last year.

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $9.4 million commercial foreclosure concerning a loan filed on March 8, 2023, by Parkview Financial REIT against Ismael Fernandez and Marc Salih.

The neighborhood

In East Harlem, The majority, or 51 percent of the 52.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has near average sales volume among other neighborhoods with $612 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Harlem has near average amount of major developments among other neighborhoods and is the 7th highest in Manhattan. It had 3.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 28 commercial properties representing 231,341 square feet of the 354,844 square feet. The largest owner is Croman Real Estate, followed by East Harlem Scholars Academy Charter School and then Emerald Equity Group. On the tax block, there was one new building construction project filed totaling 20,160 square feet. It is a 22-unit, 20,160 square-foot residential (R-2) building submitted by Salih Marc with plans filed December 7, 2016 and permitted August 8, 2017.

The owner

The PincusCo database currently indicates that Marc Salih owned at least two commercial properties with 22 residential units in New York City with 20,136 square feet and a city-determined market value of $1.6 million. (Market value is typically about 50% of actual value.) The portfolio has $9.4 million in debt, borrowed from Parkview Financial. Within the portfolio, the bulk, or 100 percent of the 20,136 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

The surrounding

Within a 400-foot radius of 310 East 106 Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months. Of those five items, five were loans above $5 million totaling $104.3 million. The most recent of the five was East Harlem Scholars Academy Charter School in which borrowed $71.2 million from Bank of New York Mellon as trustee secured by the 51,286-square-foot, one-unit industrial (W3) on 2050 2nd Avenue on December 23, 2022.

Direct link to the property’s ACRIS page and link to DOB NOW portal.