Pre-foreclosure filings: $11.8M in Washington Heights, $8.4M in FiDi

Flagstar Bank filed an $11.8 million pre-foreclosure filing on October 3, 2024, alleging payment defaults for the loan that is secured by 820 West 181st Street in Washington Height, Manhattan. The bank filed the action in State Supreme Court in Manhattan. The borrower is an affiliate of the Edelstein family’s Edel Family Management.
Case LINK
Court filings represent the position of one party and are not necessarily accurate or complete.

According to the complaint, “812 Realty failed to make the monthly payments of principal and interest and escrow and other amounts due under the Loan Documents for March 1, 2024, and thereafter…” The owners refinanced the loan with New York Community Bank, later acquired by Flagstar Bank, on July 6, 2018, with $11.779 million. The owners bought the building in 1983 for approximately $500,000. Edel Family Management owns at least 22 buildings nearly all in Washington Heights and all but one in Manhattan. The portfolio has 1.38 million square feet of built space and 1,279 units.

The property

The elevator building with 54 residential units in Washington Heights has 58,650 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 128 feet and is 102 feet deep with a total lot size of 12,575 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.1 million.

Prior sales and revenue

The 58,650-square-foot property generated revenue of $1.6 million or $28 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received one DOB violation, $1,250 in ECB penalties, 11 housing violations, and $1,550 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 $11.8 million commercial foreclosure concerning a loan filed on October 3, 2024, by Flagstar Bank against Michael Edelstein, Florence Edelstein, and Edel Family Management.

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

Citizens Bank filed an $8.355 million pre-foreclosure action against the owner of 96 Greenwich Street in the Financial District of Manhattan, alleging a payment default. The bank filed the action in State Supreme Court in Manhattan on October 2, 2024.

Case LINK

Property owner Robert Kremer borrowed $8.355 million in December 2016. He bought the property in April 2008 for $2.5 million. According to the complaint, “Defendant Alexander Hamilton Tavern Corp. a/k/a MG Alexander Hamilton Tavern Corp. is a commercial tenant, with the lease running until June 30, 2030, for the lower-level floor… Borrower defaulted under the Loan Agreement and the Note as, among other things, the Borrower failed to pay the monthly installments due under the Note for November and December 2023 and for January, February, March, April, May and June 2024. Borrower, Guarantor, and Plaintiff entered into a certain “Forbearance Agreement” dated June 07, 2024… Borrower and Guarantor failed to meet the “Milestones” and multiple Forbearance Termination Events occurred…”

The property

The mixed-use building with 1 residential units in Financial District has 9,734 square feet of built space and 8,463 square feet of additional air rights for a total buildable of 18,200 square feet according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 91 feet deep with a total lot size of 1,820 square feet. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million.

Prior sales and revenue

This property was sold for $2.5 million on April 9, 2008.

The 9,734-square-foot property generated revenue of $460,133 or $47 per square foot, according to the most recent income and expense figures.

Development

For the tax lot building, it received its initial renovation certificate of occupancy on August 22, 2016.

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 $8.4 million commercial foreclosure concerning a loan filed on October 2, 2024, by Citizens Bank against Robert Kremer.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 3rd highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 12.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

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