Prime Financial files $111M in pre-foreclosure suits against two Fortuna hotels

Affiliates of lender Prime Financial Partners filed to foreclose on July 1, 2022, on two loans totaling $111 million secured by Morris Moinian’s Fortuna Realty Group.

The larger loan was for $66 million and is secured by the Hotel Hendricks at 25 West 38th Street, while the smaller loan is for $45 million secured by Hotel Hugo at 525 Greenwich Street.

Court records are the positions of one party and are not necessarily accurate or complete. Fortuna has not yet filed response papers.

According to the complaint filed against Hotel Hendricks, “This is an action to foreclose a first-priority lien held by Lender on certain commercial real and personal property located at 25-27 West 38th Street, New York, New York. The lien secures a commercial mortgage loan made to Fortuna Fifth Ave LLC and Hendricks Hotel LLC (collectively, “Borrower”) in the original principal amount of $66,000,000.00 (the “Loan”).’

As for the Hotel Hugo, Morris Moinian purchased the property in 2011 for $12.75 million and then built the hotel, and in 2018 refinanced with M&T Bank for $45 million. Prime Financial bought the note in February 2022. According to the complaint, “Borrower failed to make the monthly Debt Service Payments for the month of November 2020 and each month thereafter, which failure constitutes an Event of Default under the Loan Documents. 32. On March 11, 2021, Original Lender sent written notice to Borrower of Borrower’s defaults under the Loan Documents, and requested cure of such defaults. A true and correct copy of the March 11, 2021, letter is attached hereto as Exhibit G. Borrower failed to cure the defaults as demanded in the September 30, 2021 letter. 36. By letter dated March 30, 2022, Lender accelerated the indebtedness due and owing under the Note and other Loan Documents and demand was made for immediate payment, in full, of all amounts owed under the Note and other Loan Documents. A true and correct copy of the March 30, 2022, letter is attached hereto as Exhibit I.”