Ross faces foreclosure at Pearl Street condo

By David Jones | January 27, 2011 05:11PM

James Ross and 62 Pearl Street Investor James Ross is facing a $6.2 million foreclosure suit by Signature Bank after allegedly defaulting on a note backed by his 62 Pearl Street condominium building in the Financial District.

Signature alleges in a suit filed Dec. 29 in New York State Supreme Court that Ross, managing member of Manhattan-based investment firm Rossrock, borrowed the funds in November 2008 to develop the six-unit condo.

Court records show that Ross was required to make monthly payments of $38,482, with the final installment due December 2013. The borrower had an option to extend another five years.

According to the suit, Ross failed to make his October and November 2010 payments, and was notified that the loan would be accelerated. Signature allegedly asked the court to appoint a temporary receiver.

The lender is asking that a foreclosure sale be held by the Kings County Sheriff. It wasn’t immediately clear why the sale would be held in Brooklyn rather than Manhattan.

Rossrock, which previously operated under the name Rossrock Company, was launched in 1992 and specialized in acquiring distressed loans, originating mezzanine loans and investing in commercial real estate, according to Rossrock’s website.

In November 2008, the company developed and refinanced 62 Pearl Street, which was originally approved for ground-floor office and upstairs storage, and was converted into ground-floor retail with residential space on the upper floors.

A restaurant called 1834 Bar and Burger opened at the building in March 2010.

A spokesperson for Signature Bank said the lender could not comment. Ross declined to comment.