UWS rental building to hit foreclosure auction block

The building has 204 apartments, and houses the Italian eatery ‘Cesca

New York /
Oct.October 10, 2012 12:30 PM

An 81,339-square-foot Upper West Side apartment building is set to hit the foreclosure auction block next month with an outstanding lien of $40 million.

The property, at 166 West 75th Street, has 204 residential units and had a yearly gross rental income of $2.5 million in 2009, according to legal documents filed in New York State Supreme Court. The senior mortgage on the property is held by Argent Ventures, which bought the loan from GE Business Financial Services last year. An LLC named for the address of the property bought the building for $32.9 million in 2007, according to public records, taking a $35.8 million mortgage against the property from GE.

In February 2009 and again in March 2009, the borrower defaulted on its monthly interest payment. A judgment of foreclosure was granted against the property last month. The property has been in receivership since 2009. It will be auctioned off on November 7 at 60 Centre Street. Argent was not immediately available for comment.

While the ownership entity is listed as having an address at New York City Management, a management company affiliated with Michael Besen’s Besen & Associates, the identity of the former title-holder was unclear. Besen declined to comment on the building.

Michael Shah’s DelShah Capital was one of the investors in the property, which recently underwent a partial renovation. The owners bought out some of the tenants in the building, which currently has approximately 100 vacant units, sources said.

“DelShah Capital was not the original owner of 166 West 75th Street, nor the defaulting borrower,” said a spokesperson for DelShah in a statement to The Real Deal. “DelShah provided mezzanine financing and has since taken control of the borrowing entity.”

The spokesperson, who declined name the defaulting entity, continued: “Following a pre-packaged bankruptcy, negotiated by DelShah Capital, the property will be sold free and clear. [The property] has a hotel certificate of occupancy and is in a prime location for residential build-out or for hotel use.”

The building is currently being marketed for sale by brokerage HFF, DelShah said. Its 6,800-square-foot ground-floor retail space houses the restaurant, ’Cesca, where Yoko Ono reportedly has a private table.


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