Owner of tax liens moves to foreclose on UES building tied to Chaim Miller

Trust wants to jump in line of creditors involved in bankruptcy

TRD New York /
Apr.April 05, 2017 06:00 PM

A trust that bought up more than $84 million worth of delinquent property bills wants to jump to the front of the line of creditors looking to get paid from the sale of a distressed Manhattan property tied to oft-sued Brooklyn investor Chaim Miller.

The Bank of New York Mellon, acting as the agent of the trust, filed a lawsuit seeking to foreclose on the medical office building at 261 East 78th Street, according to documents filed with the Manhattan Supreme Court Wednesday.

Miller TRData LogoTINY, who along with partner Sam Sprei has been sued at least 20 times in recent years by partners, formed a partnership in 2014 to co-own the building with Lee Moncho, who claims in a separate case that Miller forfeited his ownership in the property.

Moncho filed for bankruptcy last year, and the trust’s lawsuit would give it precedent over all other creditors to collect the $814,600 in liens the property owes.

Representatives for Miller and Moncho could not be immediately reached for comment.

The trust bought 3,405 liens last year, roughly 40 percent of which were in Brooklyn and about 15 percent in Manhattan. Between 2008 and 2016, 354 of the 41,400 liens that were sold were foreclosed upon.

The liens for unpaid sewer and water bills against the six-story medical office building are now more than seven months past due since the date of the lien sale, according to the lawsuit.

Meanwhile, the property is up for sale after Moncho filed for bankruptcy in June, claiming Miller backed out of his agreements to secure new capital for the building and took out an unauthorized loan.

Moncho owes creditors more than $14 million, including $10 million to Madison Realty Capital, court papers show.

The property is on the market with Stuart Gross at Eastern Consolidated with an asking price of $18.5 million, according to the brokerage’s website. Gross could not be immediately reached for comment.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Photo illustration of GDSNY CEO Michael Kirchmann, Klövern CEO Rutger Arnhult and 417 Park Avenue (Google Maps, iStock)

Klövern, GDS finance 417 Park Ave with $100M in Swedish bonds

Klövern, GDS finance 417 Park Ave with $100M in Swedish bonds
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
 David Bistricer of Clipper Equity and 77 Commercial Street in Greenpoint (REIT and Google Maps)

Bistricer lands $386M construction loan for Greenpoint project

Bistricer lands $386M construction loan for Greenpoint project
109 East 79th Street and Victor Sigoura (Google Maps; Getty)

Victor Sigoura lands $133M construction loan for UES condo

Victor Sigoura lands $133M construction loan for UES condo
From left: Mapleton Rentals at at 1555-1575 61st Street in Mapleton, 1440 Story Avenue in Soundview, Beard-Van Brunt at 411 Van Brunt Street in Red Hook

Abraham Leser targets $74M refi for Brooklyn, Bronx properties

Abraham Leser targets $74M refi for Brooklyn, Bronx properties
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Peter Fine inks $70M construction loan for Harlem resi project

Peter Fine inks $70M construction loan for Harlem resi project
arrow_forward_ios

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

Loading...