The Chetrit Group landed a refinance for its planned two-tower, 1,300-unit apartment development in Two Bridges, ending a foreclosure from Madison Realty Capital.
Chetrit chipped in more equity to extend its loan with Madison Realty for one year. Henry Bodek of Galaxy Capital brokered the deal.
The lender had initiated a U.C.C. foreclosure on Chetrit’s interest in the development site at 265-275 Cherry Street. Madison alleged that Chetrit defaulted on an $8 million mezzanine loan it used to finance the acquisition of the property.
Chetrit bought the site for $78 million in 2022 from CIM Group and L+M Development Partners. Chetrit secured a $63 million first mortgage and the mezzanine loan from New York-based Madison Realty, a frequent lender to Chetrit.
Chetrit also recently refinanced two of its properties in South Florida with Madison Realty. Both properties were also facing U.C.C. foreclosure by Madison Realty.
Joseph Chetrit and his relative Jacob agreed to pump in a significant amount of capital to refinance and extend their loans on the 121-unit condo project in Pompano Beach and redevelopment of the century-old Hollywood Beach Resort.
Chetrit’s Lower Manhattan site was one of four in Two Bridges with high-rises planned. Developers were delayed about two years by opposition from local groups and lawmakers, who argued unsuccessfully in court that the projects required a rezoning by the City Council. The de Blasio administration defended its decision to allow the developments.
U.C.C. foreclosures are non-judicial foreclosures that allow lenders to foreclose on a property within 60 days instead of a lengthy court process. Lenders often initiate U.C.C. foreclosures to bring recalcitrant borrowers to the table and force them to cut a deal.
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Commercial
South Florida
Chetrit avoids foreclosure of Hollywood, Pompano Beach projects
Commercial
New York
Joe Chetrit defaults on 1,300-unit Two Bridges dev site