Jona Rechnitz facing foreclosure on Borough Park property

Unidentified LLC filed to take control of 16K sf retail-and-office building

New York /
May.May 24, 2017 06:00 PM

Jona Rechnitz, the key witness in the federal government’s probe of corruption at the New York Police Department, is at risk of losing a block-long retail-and-office building he owns in Borough Park.

Rechnitz’s JSR Capital is in default on a $15 million loan the investor landed when he purchased the 32,000-square-foot Solomon Plaza at 5002 13th Avenue in April 2015 for $25 million, court records show.

Signature Bank and RCG Longview provided JSR the debt, which had a maturity date of May 1, 2017. But JSR defaulted when the note came due, and an entity named 5002 Holdings LLC acquired the note. Earlier this week, 5002 Holdings filed a motion in Brooklyn State Supreme Court to foreclose on the property.

A representative for JSR declined to comment. The LLC holding the note is registered to the law firm Fink & Zelmanovitz in Marine Park. A representative for the law firm declined to comment.

In a somewhat aggressive move for a foreclosure proceeding, 5002 Holdings has asked the court to order JSR tenants to stop paying rent to the landlord, and make payments directly to the lender.

Rechnitz is a key witness in multiple investigations of possible corruption at the NYPD. In March, President Trump’s newly appointed district attorney for Manhattan announced he would not bring charges against Mayor Bill de Blasio over possible pay-to-play schemes, though noted the mayor’s fundraising efforts violated the spirit of the law.


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
Donor tied up with de Blasio’s real estate pal Rechnitz sentenced in NYPD bribery scheme
Donor tied up with de Blasio’s real estate pal Rechnitz sentenced in NYPD bribery scheme
Donor tied up with de Blasio’s real estate pal Rechnitz sentenced in NYPD bribery scheme
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
Reynolds Asset Management's Lou Reynolds and 7-15 W Main St in Bound Brook, NJ (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Loopnet, Reynolds Assets Management)
Tri-state roundup: These New Jersey and Long Island deals aren’t turkeys
Tri-state roundup: These New Jersey and Long Island deals aren’t turkeys
Maefield Development's Mark Siffin and 20 Times Square (aka 701 Seventh Avenue) (Getty, Edition Hotels)
Massive loan on Maefield’s 20 Times Square in trouble
Massive loan on Maefield’s 20 Times Square in trouble
Signature's Joseph DePaolo (Getty, Signature)
FTX crash could hit Signature’s multifamily lending
FTX crash could hit Signature’s multifamily lending
arrow_forward_ios

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

Loading...