Ladder Capital intends to sign four rental properties in Harlem owned by Isaac Kassirer’s Emerald Equity after the company fails to repay a $ 32 million loan.
The lawsuit alleges that the loan at 110 St. Nicholas Avenue, 110 West 116th Street, 120 West 116th Street and 1917 Adam Clayton Powell Boulevard are 30 days overdue. The lawsuit was filed Thursday in New York’s Supreme Court.
In April, Isaac Kassirer extended the loan from April 6 to October 6 and personally guaranteed the bill. By November 6, almost $ 32 million in principal, interest and fees had not been paid.
E&M Management and Churchill Real Estate Holdings are also defendants in litigation because they may have interests in assets. Defendants have one month to respond before a default judgment places forced real estate.
The creditor argues that the foreclosure may go further in part because the default was not caused by Covid-19. Tenant payments in residential apartments have he remained strong during a pandemic, resulting in little, if any, difficulties in the multi-family sector.
A source with direct knowledge of the matter, but not entitled to debate, said Emerald had paid more money for the buildings and, because he did not have enough money to close, was looking for expensive bridge funding. At the time, there were many vacancies in the building, the man said, and Emerald planned to increase rents after making improvements to those units. This plan was ruined a month later when changes in state law it made it impossible.
Emerald Equity and Ladder Capital did not respond immediately to requests for comments. E&M declined to comment.
Emerald Equity was one of the most aggressive multi-family players in New York before changes in state law dramatically changed the investment environment by reducing the costs that property owners could pass on to tenants for improvement.
In society East Harlem portfolioEmerald Equity planned to renovate the apartments and increase rents, but these plans were disturbed in June 2019, when the law on housing stability and tenant protection was passed to the dismay of the real estate industry.
These properties in East Harlem, known as the Dawnay Day portfolio, were not included in Ladder Capital’s closing suit. Sources said the portfolio is over-indebted, and earlier this year Kassirer he said his company weighed “every option” to save it. According to the Wall Street Journal, tenants in these buildings still refuse to pay rent, and organizers say housing conditions deteriorated during the pandemic.