Toby Moskovits’s Bushwick Generator is headed to a foreclosure auction.
The judge in Fortress Investment Group’s foreclosure lawsuit against Heritage Equity Partners’ Moskovits and Michael Lichtenstein ruled earlier this month that their development at 215 Moore Street in Bushwick can head to auction after more than three years of legal wrangling.
The auction will take place at the Brooklyn county courthouse at a date yet to be determined.
Moskovits and Lichtenstein owe $48.2 million on the $32.6 million mortgage they took out on the property in 2018, according to a referee’s report from mid-January. Interest is accruing at more than $17,000 per day.
Fortress filed to foreclose on the property in 2019 but Moskovits shot back with a litany of allegations, claiming the Softbank-owned lender was running a loan-to-own scheme.
Moskovits asserted that Fortress interfered with her effort to refinance the debt and even chased other lenders away. But the judge ruled that, despite those allegations, there was “no dispute” that Moskovits failed to repay the debt.
“None of defendants’ arguments alleging that plaintiff fabricated their default rebut the alleged defaults,” Judge Reginald Boddie wrote in his decision this month.
Neither Moskovits nor her attorney immediately responded to a request for comment.
Heritage had planned to redevelop the property on Moore Street into a 75,000-square-foot “innovation collective” described by its architect as the “antithesis of the sterile Silicon Valley office park.”
Moskovits has been navigating several lawsuits and trying to fend off creditors.
Her bankrupt Williamsburg Hotel was approved for sale in January for $96 million.