Santander targets NYC borrower with 4 East Village pre-foreclosures totaling $39.6M
520 East 14th Street (Credit - Cyclomedia)
Santander Bank through the distressed debt vehicle SIG RCRS A/B MF 2023 Venture LLC, filed four pre-foreclosure actions in New York State Supreme Court in Manhattan yesterday alleging payment and other defaults in a four-building East Village portfolio with $39.6 million in original debt.
The plaintiff is a joint venture that acquired a portion of the failed Signature Bank portfolio. The complaints allege a pattern of payment defaults beginning in early 2024, coupled with additional allegations which the lender claims triggers personal liability for the guarantors.
The properties are owned by affiliates of real estate investor David Jacobson.
The filings, targeting multifamily and commercial assets in the East Village, represent a combined claim including alleged default interest, of approximately $55.2 million.
Case 520 East 14th Street LINK
Case 346 East 13th Street LINK
Case 441 East 12th Street LINK
Case 199 Avenue A LINK
Santander Bank alleges defaults in East Village portfolio
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Property Address | Original Principal | Total Claim Amount | Default Date |
|---|---|---|---|---|---|---|---|---|
| 1 | acris | 05/05/2026 06:44 AM | acris | 05/05/2026 06:44 AM | 520 East 14th Street | 12,244,510 | 17,515,460 | 04/01/2024 |
| 2 | acris | 05/05/2026 06:44 AM | acris | 05/05/2026 06:44 AM | 346 East 13th Street | 12,000,000 | 16,700,000 | 07/01/2024 |
| 3 | acris | 05/05/2026 06:44 AM | acris | 05/05/2026 06:44 AM | 441 East 12th Street | 12,490,716 | 17,000,000 | 05/01/2024 |
| 4 | acris | 05/05/2026 06:44 AM | acris | 05/05/2026 06:44 AM | 199 Avenue A | 2,900,000 | 3,940,900 | 08/01/2024 |
| 5 | acris | 05/05/2026 06:44 AM | acris | 05/05/2026 06:44 AM | Total | 39,635,226 | 55,156,360 |
Court filings represent the position of one party and are not necessarily accurate or complete.
The walkup building at 520 East 14th Street with 44 residential units in the East Village has 21,007 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 103 feet deep with a total lot size of 5,163 square feet. The zoning is C1-6A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.4 million. The most recent loan totaled $9.9 million and was provided by Signature Bank on October 10, 2020.
The walkup building at 346 East 13th Street with 24 residential units in the East Village has 16,752 square feet of built space and 607 square feet of additional air rights for a total buildable of 17,344 square feet according to a PincusCo analysis of city data. The parcel has frontage of 42 feet and is 103 feet deep with a total lot size of 4,336 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.9 million. The most recent loan totaled $11.4 million and was provided by Signature Bank on October 10, 2020.
The walkup building at 441 East 12th Street with 40 residential units in the East Village has 24,576 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 51 feet and is 100 feet deep with a total lot size of 5,175 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7 million. The most recent loan totaled $9.8 million and was provided by Signature Bank on October 10, 2020.
The walkup building at 199 Avenue A with 9 residential units in the East Village has 5,706 square feet of built space and 4,583 square feet of additional air rights for a total buildable of 10,300 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,575 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.8 million.
The largest of the four filings concerns the property at 520 East 14th Street. The plaintiff is seeking a total claim of $17,515,460, including accrued interest and fees.
The defendants, David 520 LLC and 520 East 14 Ricatto LLC, both controlled by Jacobson, defaulted on a series of loans consolidated over more than a decade. The debt originated with a principal of $12,244,510 via notes issued between 2007 and 2019. According to court records, the borrowers failed to make required payments starting in April 2024.
Santander’s venture filed a second action against 346 East 13th Street, seeking $16.7 million. The property is held by David 346 LLC and 346 East 13 Ricatto LLC. While the debt history includes a minor 1980 lien, the current action stems from a $12 million restated note issued in 2017 by Signature Bank. The lender alleges a payment default occurred in July 2024. Notably, the complaint asserts that Jacobson is personally liable under a recourse guaranty, citing the alleged misapplication of rental income and failure to maintain the property.
A third foreclosure was filed against the commercial property at 441 East 12th Street. The defendants, David 441 LLC and 441 East 12 Ricatto LLC, are accused of defaulting on two Signature Bank loans totaling $12,490,716 issued in 2018 and 2019. The payment default reportedly began in May 2024. The lender’s total claim exceeds $17 million.
The final filing targets 199 Avenue A, where the lender is seeking $3,940,900. The original $2.9 million loan was issued by Signature Bank in July 2017. The entity entered payment default in August 2024. This complaint specifically names both David Jacobson and Michael Ricatto.
The SIG RCRS vehicle was formed following the FDIC’s sale of Signature Bank’s $33 billion commercial real estate loan portfolio. Santander acquired a 20% equity stake in the venture and serves as the primary servicer of the assets.
The block
On this tax block, PincusCo has identified the owners of nine of the 25 commercial properties representing 118,634 square feet of the 259,123 square feet. The largest owner is Abdolkarim Yaghoubi, followed by Alan Rabunski and then Big Apple Properties. There are no active new building construction projects on this tax block.
The owner
The owners according to the Department of Housing Preservation and Development includes David Jacobson, head officer and Howard Jacobson, officer. The business entity is David 520 Llc.
The surrounding
Within a 400-foot radius of 522 East 14 Street, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months. Of those 11 items, five were sales above $5 million totaling $46.8 million. The most recent of the five was Kings Capital which bought the 9,309-square-foot, 22-unit rental (C7) on 515 East 12th Street for $7.2 million from Marshall Aronow, David Aronow, and Anna Bauder on April 29, 2026. Of those 11 items, six were loans above $5 million totaling $65.5 million. The most recent of the six was Kings Capital in which borrowed $5.4 million from Derby Copeland Capital secured by the 9,309-square-foot, 22-unit rental (C7) on 515 East 12th Street on April 29, 2026.
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page