Real Estate Equities hit with $13M pre-foreclosure suit on Harlem parcel
East West Bank filed a pre-foreclosure action against Real Estate Equities Corp., seeking to foreclose on a $13.1 million loan secured by 313-315 West 125th Street, according to a complaint filed in New York State Supreme Court. The filing identifies Brandon Miller, a principal with REEC, as the loan’s guarantor.
REEC signed a $13.1 million loan with the bank in 2017. Loan payments were deferred because of the Covid pandemic, according to the complaint. The complaint says terms of that deferral were not complied with and so the loan was declared in default.
A court filing is the position of one party, and is not necessarily accurate or complete.
According to the complaint, “Borrower breached the terms of the Deferral Agreement by failing to replenish a certain Deposit Account (as that term was defined in the Deferral Agreement) ten (10) business days prior to the quarter ending March 31, 2021 (the “Replenishment Breach”). The Replenishment Breach constituted a Deferment Termination Event under the terms of the Deferral Agreement. 36. By letter dated March 30, 2021, Plaintiff notified Borrower and Guarantor that the Replenishment Breach had occurred.”
REEC signed a ground lease for the parcel in 2015.