Mendlowits’ UWS tenement gets receiver

New York /
Jan.January 28, 2010 07:10 PM

A New York State Supreme Court Judge approved a request by Istar Financial to appoint a receiver at an Upper West Side tenement complex owned by Adorama investor Mendel Mendlowits, who is facing foreclose proceedings at the properties.

Judge James Yates ordered attorney Peter Weiss to take over as receiver of the rental buildings while the foreclosure works its way through the courts.

The judge further ordered that Walters & Samuels, a Manhattan-based property management firm, oversee the properties.

Istar, a Manhattan-based commercial real estate lender, filed suit earlier this month to foreclose on the site at 201 West 92nd and 200 West 93rd, after Mendlowits allegedly defaulted on a $46 million mortgage, failed to pay $329,950 in taxes and signed a commercial lease for a pet shop without the prior consent of the lender.

Mendlowits now owes the bank $53 million, including interest, legal fees and other charges.

Mendlowits and his family acquired the 134-unit property in 2008 after Kent Swig, who owned the buildings with investors Yair Levy and Charles Dayan, failed to convert the buildings into condos. Swig planned to build condo units on top of the existing buildings, but the plan was rejected by the city Department of Buildings after extensive protests from tenants and local politicians.

Meanwhile, residents at the buildings panicked after a letter, obtained by The Real Deal, was posted in their lobbies, informing them of the foreclosure proceedings. The notice alerts tenants who don’t have a valid lease that they will have 90 days to remain in their units, before being at risk of eviction.

After being notified by Assembly member Linda Rosenthal about the foreclosure, Brian Lawlor, acting commissioner of the state Division of Housing and Community Renewal, assured her that rent-stabilized and rent-controlled tenants would be protected. In her letter, Rosenthal noted that the building was the recipient of J-51 tax abatements.

“Be assured that in these buildings, the tenants continue to be afforded the same level of protection even though the buildings are the subject of foreclosure,” Lawlor told Rosenthal in a Jan. 22 letter, also obtained by The Real Deal.

Mendlowits’ attorney did not return phone calls for comment.


Related Articles

arrow_forward_ios
How to steal a building in broad daylight
How to steal a building in broad daylight
How to steal a building in broad daylight
Eric Ulrich and Kazimir Vilenchik (Twitter via Eric Ulrich, LinkedIn)
Mayor taps Republican ex-Council member as buildings chief
Mayor taps Republican ex-Council member as buildings chief
(iStock/Photo Illustration by Steven Dilakian for The Real Deal)
NYC construction deaths ticked up in 2021, but incidents notched 3-year decline
NYC construction deaths ticked up in 2021, but incidents notched 3-year decline
From left: 320 West 115th Street, Barry LePatner and Steven Kirschenbaum (320 West 115th Street, LePatner, LinkedIn)
LePatner sues former Swig COO for unpaid bills
LePatner sues former Swig COO for unpaid bills
NYC construction deaths fell in first year of pandemic
NYC construction deaths fell in first year of pandemic
NYC construction deaths fell in first year of pandemic
From left: Jay Sugarman, chief executive officer, iStar; Mark Jenkins, head of global credit, The Carlyle Group (iStar, The Carlyle Group, iStock)
Carlyle picking up iStar’s net-lease portfolio for $3B
Carlyle picking up iStar’s net-lease portfolio for $3B
New Kings of New York
Order now: “The New Kings of New York,” a book about the city’s real estate’s transformation
Order now: “The New Kings of New York,” a book about the city’s real estate’s transformation
Former WeWork CEO Adam Neumann (Getty Images, iStock, Yard 8 Miami, Stacks on Main, Trulia, Power Design Inc., Inkwell Decatur, Wikipedia, Illustration by Kevin Cifuentes for The Real Deal)
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
Depreciation Man: Adam Neumann’s real estate binge to ease tax bill
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...