Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Churchill Real Estate aims to collect money it’s owed by CTW Realty’s Gary Tse

New York /
Nov.November 25, 2020 04:21 PM
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Churchill Real Estate’s Justin Ehrlich and 381 Broadway (Google Maps)

Churchill Real Estate has filed a lawsuit against a company tied to CTW Realty’s Gary Tse in order to collect a $20 million foreclosure judgment.

The lawsuit, filed in New York State Supreme Court, is Churchill’s apparent attempt to counter Tse’s recent move to seek Chapter 11 bankruptcy protection for the shell company, 381 Broadway Realty, which faces foreclosure and $23 million in debt, including $20 million from Churchill.

In the complaint, Churchill alleges that Tse has violated the debt agreement by letting his childrens’ business, Caden, host “boisterous and loud parties” at 381 Broadway without collecting rent, and by taking out total $5.5 million loans against the building without Churchill’s consent.

“Given the foregoing, Tse is liable for the full unpaid value of the debt,” the complaint states.

Leopold declined to comment. Elena McDermott, the attorney representing 381 Broadway Realty, did not respond to a request for comment. Caden did not return a Facebook message seeking comment.

In March, Churchill won a $20 million default judgement against Tse’s 381 Broadway Realty following a months-long foreclosure proceeding. But the company has not been able to proceed with the foreclosure process because of the pandemic lockdown.

Earlier this month, 381 Broadway Realty filed for bankruptcy, prompting an automatic stay on its creditors’ debt collection.

According to the bankruptcy filing, Tse’s company owes $3 million to Titan Capital of Westport, Connecticut, in addition to $20 million to Churchill.

Another property owned by Tse at 55-59 Chrystie Street in Chinatown was sold in a bankruptcy auction earlier this year. Jeffrey Lam of Lam Generation bought the 46,000-square-foot mixed-use building in Chinatown for $28.6 million, according to public records.





    Related Articles

    arrow_forward_ios
    Before the pandemic, national tenants paid 94 percent of rent. (Getty)

    Retail rent collections rebound to 90%

    Retail rent collections rebound to 90%
    Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

    7 Manhattan hotels head to auction block

    7 Manhattan hotels head to auction block
    As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

    Silicon Valley exodus: Where’d everyone go?

    Silicon Valley exodus: Where’d everyone go?
    TF Cornerstone President Frederick Elghanayan with 2-10 54th Avenue and 55-01 Second Street in Long Island City (Google Maps)

    The 10 biggest new project filings in NYC

    The 10 biggest new project filings in NYC
    Gov. Andrew Cuomo announced that a major development surrounding Penn Station. (Getty)

    Cuomo adds housing to $51B Midtown West project

    Cuomo adds housing to $51B Midtown West project
    Alex Sapir (Getty)

    Former Sapir employee accuses company of retaliation

    Former Sapir employee accuses company of retaliation
    229 West 43rd Street in New York and Two Westlake Park in Texas. New York and Texas are the states with the largest exposure to loans with appraisal reductions. (Photos via iStock; Google Maps; JLL)

    What appraisal reductions mean for future losses on CMBS loans

    What appraisal reductions mean for future losses on CMBS loans
    Cushman & Wakefield CEO Brett White, Mayor Bill de Blasio, and Donald Trump, Eric Trump and Donald Trump Jr. (Getty)

    Cushman & Wakefield, NYC cut ties to Trump Organization

    Cushman & Wakefield, NYC cut ties to Trump Organization
    arrow_forward_ios

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

    Loading...