Rialto files $23.5M pre-foreclosure at Garment District office building owned by Mamrouts’ Sentry Realty
260 West 36th Street (Credit - Google)
Rialto Management Group filed a $23.5 million pre-foreclosure action yesterday alleging the debt secured by the Garment District office building located at 260 West 36th Street, and owned by the Mamrout family’s Sentry Realty, was in a payment default.
Case LINK
Sentry Realty, at the time through one of its co-owners, Alen Ouni Mamrout, bought the building in December 2022 for $33 million, then assuming a securitized loan with an original principal of $23.5 million. Traded NY at the time reported Meyer Equities was the buyer. The loan documents specify that Meyer Equities is the property manager. It’s unclear if it also owns an equity stake in the property.
Despite the alleged late payments at this property, Sentry Realty is obtaining property and financing at other locations.
• Sentry Realty, 60 Guilders pay $75.2M to Invesco for office in Garment District (January 23, 2025)
• Alen Mamrout, 60 Guilders, acquire 1375 Broadway in $200M deal (January 01, 2025)
This was the first building the Mamrout family purchased in its recent string of acquisitions of buildings hit hard by Covid and office occupancy dislocation, according to PincusCo data.
Rialto Management Group filed the complaint yesterday in New York State Supreme Court in Manhattan through the entity RSSCD2017-CD4 – NY2W3, LLC. Sentry Realty owns the property through the entity 260 W 36 Property LLC.
Court records reflect the position of one party and are not necessarily accurate or complete.
According to the complaint, “On or about February 9, 2017, Original Borrower executed a Consolidated, Amended and Restated Promissory Note in the original principal amount of $23,500,000.00 (“the Consolidated Mortgage Note”)… On or about September 3, 2025, Lender assigned to Plaintiff the Consolidated Mortgage Note, the Consolidated Mortgage…Multiple Events of Default occurred under Section 8.1(i) of the Loan Agreement by virtue of Borrower’s failure since March 6, 2025 to make the debt service payments required under Section 2.3.1 of the Loan Agreement… Borrower’s failure to pay certain real estate and business improvement district taxes when due and owing.”
Fitch in 2024 reported weak leasing in building: “Performance has been declining with NOI debt service coverage ratio (DSCR) at September 2023 of 0.55x compared with 1.08x at YE 2021, and 1.79x at YE 2019. Occupancy was indicated at 76% per the October 2023 rent roll, which is fairly granular with several leases indicated as month-to-month or with near-term lease expiration…”
The securitized loan trust Series 2017-CD4 sold the loan to Rialto Management Group entity RSSCD2017-CD4 – NY2W3, LLC, on September 3, 2025.
The property
The office building in Garment District has 81,375 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 73 feet and is 98 feet deep with a total lot size of 7,266 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $13.7 million. The most recent loan totaled $23.5 million and was provided by Series 2017-CD4 on December 19, 2022.
Prior sales and revenue
This property was sold by Albert Monasebian and Nader Hakakian for $33 million to Ouni Mamrout on December 19, 2022.
The 81,375-square-foot property generated revenue of $3.1 million or $38 per square foot, according to the most recent income and expense figures.
Violations and lawsuits
According to city public data, the property has received two DOB violations, $6,250 in ECB penalties, and $11,050 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 $23.5 million commercial foreclosure concerning a loan filed on September 17, 2025, by Rialto Management Group against Sentry Realty and Ouni Mamrout.
The neighborhood
In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Garment District is the 6th most active neighborhood among other neighborhoods. It had 11.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of nine of the 18 commercial properties representing 878,416 square feet of the 1,612,007 square feet. The largest owner is Kaufman Organization, followed by Ouni Mamrout and then Pi Capital Partners. There are no active new building construction projects on this tax block.
The owner
The PincusCo database currently indicates that Ouni Mamrout owned at least one commercial property in New York City with 81,375 square feet and a city-determined market value of $12.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.
The surrounding
Within a 400-foot radius of 266 West 36 Street, PincusCo identified 13 commercial real estate items of interests occurred over the past 24 months. Of those 13 items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $774,420. The most recent of these two items was the filing on May 15, 2025 for a 112,578-square-foot residential (R-2) building with nine residential units at 255 West 36th Street. Of those 13 items, six were sales above $5 million totaling $103.9 million. The most recent of the six was Hiwin Group USA which bought the 14,686-square-foot, 18-unit office building (O6) on 249 West 34th Street for $6.6 million from Albert Bialek on August 28, 2025. Of those 13 items, five were loans above $5 million totaling $173.4 million. The most recent of the five was Cayre Equities and A&H Acquisitions in which borrowed $15.4 million from Israel Discount Bank secured by the 130,000-square-foot, 15-unit office building (O9) on 229 West 36th Street on June 3, 2025.
Direct link to the property’s ACRIS page and link to DOB NOW portal.