Jack Terzi is set to lose another building to foreclosure.
A judge appointed a referee to prepare the sale of the historic bank building at 807 Manhattan Avenue after the developer and retail broker failed to make loan payments.
Terzi’s company bought the neoclassical Greenpoint Savings Bank in 2018 for about $10 million and secured a $7.2 million loan from the Nassau Educators Federal Credit Union. Built at the turn of the 20th century, the building stood out for its dome and columns. It connected to a Slate Property Group building known as the Annex, which Slate had converted into residential units.
Terzi ran into trouble in 2020 when the lone tenant, Capital One, vacated. The bank alleged that Terzi never lived up to its obligations, causing it to spend $200,000 on heating during the winter of 2018-2019.
In response, an affiliate of Terzi sued in 2021, alleging that the heat issues date back to the previous landlord and that Capital One failed to inform Terzi about them before he bought the building. Capital One stopped paying rent and Terzi alleged the bank breached its lease. The lawsuit is ongoing.
Meanwhile, Terzi’s lender, Nassau Educators Federal Credit Union, claimed Terzi stopped making payments on his loan in February 2021. The loan, which he had guaranteed, was sold to Ash Corporate Services. Ash filed a lawsuit in April 2022 and a company called 807 Manhattan Note Holder eventually bought the loan and went ahead with the foreclosure.
Earlier this month, a judge allowed 807 Manhattan Note Holder to foreclose on the bank building. Terzi’s lawyers appealed, arguing the lender relied on hearsay.
A native of Gravesend, Brooklyn, who founded JTRE Holdings in 2008, Terzi has faced foreclosures across his portfolio. A judge recently allowed his lender to proceed with a foreclosure at 240 East 54th Street after a $42 million loan went into default.
A foreclosure attempt on Terzi’s 63 Spring Street, a retail space in Soho, was halted by a judge despite an allegation that Terzi had been in default on a CMBS loan since April 2020.
Terzi did not return a request to comment. An attorney for 807 Manhattan Note Holder declined to comment.
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