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
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
NYC’s office sublease surge slows as tenants move to reoccupy space
The Roger New York hotel at 131 Madison Avenue, Larry Korman of AKA Hotel Residences and Joe Lubeck of Electra America (Google Maps, Getty, Electra)
Electra America JV nabs Roger hotel for $71M discount
Electra America JV nabs Roger hotel for $71M discount
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Oceanwide’s US business is sinking. Can it right the ship?
Demir Sabanci and 41-47 West 57th Street (Sedesco, Google Maps)
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
Sedesco seeks rezoning for new Billionaires’ Row skyscraper
From left: Alvin Dworman, 155 East 55th Street, 65 West 55th Street, and 210 East 58th Street (Getty, Google Maps)
Alvin Dworman Sells 3 Manhattan Buildings for $65M
Alvin Dworman Sells 3 Manhattan Buildings for $65M
Anita Durst and images of Chashama (Photos via Getty, Chashama)
Durst-backed nonprofit puts startups into empty storefronts
Durst-backed nonprofit puts startups into empty storefronts
Berkshire Bank headquarters in 4 East 39th Street (Google Maps)
Major FiDi landlord resigns as bank chairman after stock windfall
Major FiDi landlord resigns as bank chairman after stock windfall
Nationally, just under one-third of office workers have returned to the office spaces they occupied before the pandemic. (iStock)
Employers face uphill battle luring staff back to the office
Employers face uphill battle luring staff back to the office
arrow_forward_ios

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

Loading...