The Real Deal New York

Madison Realty Capital moves to foreclose on Grace Kelly mansion

Anthony and Simone Ender missed a July 2017 loan payment: suit
By Will Parker | February 07, 2018 06:11PM

Josh Zegen, Grace Kelly and 51-53 East 73rd Street

She captured the hearts of John F. Kennedy and the Prince of Monaco. And now, Madison Realty Capital could capture her home.

The townhouse mansion formerly belonging to the late Hollywood actress Grace Kelly could soon be changing hands, after Madison filed a lawsuit on Wednesday to foreclose on the Upper East Side property currently owned by Anthony and Simone Ender.

The Enders last put the building at 51-53 East 73rd Street up for sale in 2015, asking $42 million. They’ve owned it since 1973. But in 2016, they borrowed $15.3 million against the building from Castellan Real Estate, which later assigned the loan to Madison. According to a lawsuit filed by Madison on Wednesday, the Enders failed to pay a July late fee and an August interest payment, putting the loan in default. The late charge in question amounted to $13,750.

But those missed payments happened before Madison acquired the loan, at which time Castellan accelerated the payment schedule so that the total sum of the debt was immediately due, according to the filed complaint. Soon after, in September, Castellan sold the loan to Madison.

The Enders, according to the lawsuit, do not live at the property. TRD attempted to reach the Enders by phone, but the voicemail box was full. A spokesperson for Madison did not immediately respond to a request for comment.

Madison, a private equity firm with a large debt book, buys a significant number of loans from other lenders rather than originating them, which has led to lawsuits from borrowers who allege their practices are predatory or so called “loan-to-own” schemes. Madison’s Josh Zegen, however, told TRD in a 2016 profile of the company that “We make a loan looking to get paid back.”

As of 2015, the 12,000-square-foot building at 51-53 East 73rd Street was still subdivided into six rental apartments and 12 offices.