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

Landlord wants $2M in damages

New York /
Aug.August 15, 2019 05:30 PM
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Back in the spring, lender Maverick Real Estate Partners lost a foreclosure case it filed against the owner of a Chelsea apartment building.

But the legal battle isn’t over.

Landlord Andreas Steiner claims in a new lawsuit that Maverick continues to charge punitive default interest at the rate of 24 percent a year — or, as of May 30, about $1.4 million — even though Maverick’s case was dismissed.

“We are confident that Justice [Arlene] Bluth will, once again, see Maverick’s transparent tactics for what they are — a desperate and improper attempt to obtain payments from our client to which they are not entitled,” Steiner’s attorney, Terrence Oved, wrote to The Real Deal in an emailed statement.

David Avriam, Maverick’s principal, did not immediately return a request for comment.

Maverick, which Steiner’s attorneys called a “predatory lender” in the case, also has asked the landlord to pay back legal fees and unsubstantiated insurance and tax advancements, according to the lawsuit, which was filed on Wednesday in New York County Supreme Court. The fees, including the interest demands, total around $1.48 million. Steiner wants $2 million in damages.

Maverick, through a limited liability company, acquired the debt for the five-story building at 416 West 25th Street in 2018 and soon after filed the foreclosure action against Steiner, claiming Steiner violated the terms of a $3.6 million consolidated loan agreement. Judge Bluth threw out the complaint in May, on the grounds that Maverick did not properly notify Steiner of his technical default on the mortgage.

Founded in 2010, Maverick buys defaulted first mortgages behind commercial properties in New York City. In December, the firm closed on a $200 million distressed debt fund, the firm’s fifth.


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
From left: Furnished Quarters' Steven (left) and Gary Brown with 315 West 33rd Street (left) and 158 West 27th Street (Furnished Quarters, CityRealty, CityFeet)
Landlords sue hospitality stalwart Furnished Quarters
Landlords sue hospitality stalwart Furnished Quarters
Slate Property Group's Martin Nussbaum and a rendering of the project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Ira Drukier with the Hotel Chelsea (Getty, Patrick McMullan/Getty)
Chelsea Hotel owners sue city for $100M over renovation delays
Chelsea Hotel owners sue city for $100M over renovation delays
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
C-PACE gives landlords and developers cheap financing in exchange for making energy efficient improvements. (Getty)
Landlords can now retroactively tap financing tool for energy improvements
Landlords can now retroactively tap financing tool for energy improvements
11 East 26th Street with Henry and Justin Elghanayan (Google Maps, Getty)
Rockrose investment values Nomad office building at $235M
Rockrose investment values Nomad office building at $235M
Jamie Dimon, Steve Roth, Donald Trump and 555 California St. (Trump, Getty)
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Vornado lines up $1.2B refi of SF tower co-owned with Trump
arrow_forward_ios

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

Loading...