Ready Capital seeks to foreclose on $29M Soho loan with Singer, Arev as guarantors

Lender Ready Capital through its affiliate Ready Capital Mortgage Financing 2019-FL3 filed to foreclose on a loan with an original principal of $28.775 million provided in 2018 to an affiliate of Dan Arev’s Link Real Estate, according to a suit filed February 15 in New York State Supreme Court. The borrower entity is PB 151 Grand LLC and the property is 158 Lafayette Street.

According to a source familiar with the loan, this dispute should be resolved within a week.

The suit lists Arev and major residential landlord Baruch Singer, as guarantors for the loan. The suit says the total amount due is $32.1 million.

Court filings are the position of one party and are not necessarily accurate or complete. Arev, Singer and other parties have not yet filed response papers.

The suit claims the borrowers defaulted on the loan by not making a payment due on May 10, 2020, during Covid. The parties then entered into a forbearance agreement that took effect October 10, 2020. The lender said the borrowers defaulted on that agreement by failing to make a payment due April 10, 2021.

An affiliate of the Bluestone Group with an address at Princeton Holdings bought the property in 2014 for $14.25 million in 2014, with Bluestone principal Marc Mendelsohn as signatory and Eli Tabak as the signatory on loans provided in 2017. Then the owner entity refinanced the property in 2018 with Ready Capital, and at that time the owner entity was at Link Real Estate and the signatory was Dan Arev. Ownership transferred through a “structured sale”, a source said.