The owner of a five-story commercial building in Tribeca has filed for bankruptcy, facing foreclosure and $23 million in debt.
CTW Realty’s Gary Tse owns the 18,300-square-foot building at 381 Broadway through an entity, 381 Broadway Realty, which recently filed for Chapter 11 protection with the U.S. Bankruptcy Court Southern District of New York in Manhattan.
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.
Tse’s lenders have been trying for more than two years to foreclose on the property for default, but can’t proceed currently because of the pandemic.
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In June 2018, Wilmington Trust, which had taken over Tse’s $15 million mortgage for the Tribeca building from the original lender, Ladder Capital, sued the building owner for nonpayment, commencing the foreclosure process.
And in October 2018, the $15 million loan, along with the foreclosure lawsuit, was transferred to 381 Broadway Lender, a shell company owned by Churchill Real Estate.
On March 16, State Supreme Court Justice Gerald Lebovits issued an order and judgment of foreclosure of the property, allowing Churchill to proceed with the foreclosure sale for its claim of about $20 million, which included the mortgage and legal fees.
But on March 20, New York went into lockdown because of the pandemic, and the state’s moratorium on evictions and foreclosures went into effect. The measure has been extended through Jan. 1.
According to the bankruptcy filing, Tse’s 381 Broadway Realty owes $3 million to Titan Capital of Westport, Connecticut, in addition to $20 million to Churchill.