Isaac Chetrit sues would-be buyer of Garment District office building for allegedly backing out

Frank Ng accused of defaulting twice after entering contract to pay $38M

New York /
Mar.March 06, 2017 12:35 PM

UPDATED, 2:24 p.m., March 6: It looks like Isaac Chetrit is stuck with a vacant Garment District office building he rescued from distress — and sought to flip — for longer than he expected.

Chetrit filed a lawsuit Friday against the buyer of a 14-story property at 315 West 35th Street for allegedly backing out. The Garment District-based investor entered contract in August 2016 to sell it to New Jersey-based importer-exporter Frank Ng for $38 million, roughly a year after winning the bid for it at a bankruptcy auction, as The Real Deal reported at the time. 

According to the suit, Ng defaulted twice after the 63,000-square-foot building went to contract. The closing was delayed several times, to Feb. 28, from the initial date of Oct. 31, 2016. At the first planning closing, Ng pulled out 45 minutes before they were supposed to meet at a Shanghai Commercial Bank branch, Chetrit claims in the lawsuit.

Chetrit, who runs AB & Sons with his brother Eli and son Abraham, is seeking that his firm be awarded the $3.8 million that’s already in escrow and declare Ng in default.

In response to the suit, Jacques Catafago, the lawyer for Ng, said: “This piece of litigation is most unfortunate. As will be established in court, Mr. Chetrit’s company, as seller, first materially defaulted in its clear contractual obligations to assist in connection with development and air rights for the building.”

Ng, who runs Bayonne, N.J.-based Golden Fortune Import & Export, was also the only other bidder at the 2015 auction. He had offered $42.25 million for the building, while Chetrit, a cousin to real estate mogul Joseph Chetrit, bid $43 million. Chetrit had considered converting the property to high-end residential condominiums.

Chetrit is planning to seek a rezoning of a 216,400-square-foot Ridgewood warehouse for a residential rental conversion  and is also developing a 70-story mixed-use tower on Sixth Avenue in the Garment District.


Related Articles

arrow_forward_ios
The tax break allows foreign visitors to reclaim a sales tax of 20 percent on items bought in the country for more than £30 (Getty; Unsplash)

UK tax break expiration could hurt struggling retailers

UK tax break expiration could hurt struggling retailers
Istanye Park in Istanbul (Photo via Wikipedia Commons)

Turkish mall valued at $1B in deal with Qatar

Turkish mall valued at $1B in deal with Qatar
258 8th Avenue (Google, Target)

Target planning yet another NYC store in Chelsea

Target planning yet another NYC store in Chelsea
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
Convene CEO Ryan Simonetti (Convene)

Convene closes Manhattan locations as corporate events fail to return

Convene closes Manhattan locations as corporate events fail to return
New York City District Council of Carpenters’s Monitor Glen McGorty (iStock; LinkedIn)

NYC carpenters union changes how it roots out mob ties

NYC carpenters union changes how it roots out mob ties
The Economic Innovation Group identified 145 real estate investments in Opportunity Zones (iStock)

Real estate deals dominate Opportunity Zones. Is that bad?

Real estate deals dominate Opportunity Zones. Is that bad?
arrow_forward_ios

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

Loading...