Meringoff Properties Facing Foreclosure at Soho Mixed-Use Property
Recently, Meringoff Properties found themselves in hot water as lender Aareal Bank filed a foreclosure action against them, claiming two unpaid mortgages on their Soho property. The German bank filed its case in Manhattan Supreme Court last week, as reported by Crain’s. The lender is now looking to seize control of the 171,000-square-foot property at 462 Broadway, which is owned by an affiliate of Meringoff Properties.
Unpaid Mortgages and Default
The lawsuit claims that Meringoff defaulted in May on a pair of mortgages with a principal balance of $149.3 million. Aareal Bank made two loans to Meringoff in June 2016 for a combined $135 million, which were later consolidated into a single mortgage with the same principal balance.
However, a year later, Meringoff defaulted on both loans after failing to obtain insurance for the consolidated $135 million mortgage. Aareal claims that Meringoff failed to make payments in the months leading up to the default.
Aareal Bank’s Demands
Aareal Bank wants the court to appoint a receiver to collect rents and profits before any auction of the property. They also want the ability to bid on the building using its outstanding debt.
Attorneys representing Aareal and Meringoff did not respond to Crain’s requests for comments. Meringoff also did not immediately respond to a request for comment from The Real Deal.
Meringoff’s History with the Property
Meringoff acquired the office and retail property as part of a $3.7 million portfolio purchase in 1995, according to CoStar. They renovated the 19th-century building in 2018 and have kept it occupied, boasting a 100 percent leasing rate as of Monday. Software firms Centrical and Coro Cybersecurity are among the building’s tenants.
According to PBDW Architects, the building is the largest cast-iron structure in Soho.
In conclusion, Meringoff Properties is currently facing foreclosure on their Soho mixed-use property due to unpaid mortgages and default. The lender, Aareal Bank, is seeking to seize control of the property and has filed a lawsuit in Manhattan Supreme Court. The outcome of this case will significantly impact Meringoff’s future with the property, and it will be interesting to see how the situation unfolds.
Orginal article: Link To Article – provided by Kansas City Realtors