Jona Rechnitz facing foreclosure on Borough Park property

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

TRD 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
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz (right) 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
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
 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
arrow_forward_ios

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

Loading...