Foreclosed 10-building Bronx portfolio faces repairs, challenges to sale

The $35 million mortgage on a 10-building portfolio in the Bronx is proving a tough sell, according to Crain’s, with special servicer LNR Property claiming it refuses to take a loss on the sale of the mortgage. LNR took over the apartment buildings in foreclosure earlier this year, after Los Angeles-based Milbank Real Estate, which bought the properties in 2007, fell into fiscal trouble in the market downturn. Compounding problems is the dilapidated condition of the properties, which City Council Speaker Christine Quinn said could take up to $26.6 million to repair. Massey Knakal Realty Services has been tapped to help sell the buildings, where city inspectors say there are roughly 4,355 violations spread across the complex’s 548 units. [Crain’s]

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