Yellowstone files $44.5M pre-foreclosure at Midtown West hotel refinanced in 2023

Yellowstone Real Estate Investments filed a $44.5 million pre-foreclosure action Friday in New York State Supreme court alleging the loan it originated in early 2023 and secured by the Hotel @Times Square at 59 West 46th Street in Midtown West, Manhattan was in a maturity default.

Case LINK
Court filings represent the position of one party and are not necessarily accurate or complete.

Yellowstone lent Paramdeep Singh and partners, under threat of an earlier pre-foreclosure action, $44.5 million on February 28, 2023, as PincusCo reported at the time. That loan was used to pay off the prior loan.

According to the new complaint, “As set forth in detail below, Borrower committed a maturity default under the Loan Agreement on February 28, 2024 by, among other things, failing to pay the outstanding debt as and when owed.”

The borrowers including Paramdeep Singh are facing another pre-foreclosure at 129 West 46th Street, which secures a $16.75 million loan, in a case 850190/2024 in New York county that remains active.

In the 2023 refinance, Paramdeep Singh through the entity Premier Hotels LLC as borrower signed a refi loan with lender Yellowstone Real Estate Investments through the entity YS West 47 Lender LLC valued at $44.5 million for the hotel building (H3) at 59 West 46th Street in Midtown West, Manhattan.
The deal closed on February 28, 2023 and was recorded on March 3, 2023. The prior lender was Benefit Street Partners which held debt that had an original loan amount of $37 million.

The property has 100,678 square feet of built space and 17,775 square feet of additional air rights for a total buildable of 118,500 square feet according to PincusCo analysis of city data. The loan price per built square foot is $442 and the price per buildable square foot is $375 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on February 11, 2022, for $59.5 million. The signatory for Paramdeep Singh was Paramdeep Singh. The signatory for Yellowstone Real Estate Investments was Tsach I. Hera. Paramdeep Singh refinanced the loan, after Crain’s reported a March 2023 auction date for the hotel.

Yellowstone has been an active note buyer in Manhattan.

Direct link to the property’s ACRIS page.