Mark Nussbaum Shuts Down Law firm

Embattled real estate attorney Mark Nussbaum has shut down his law firm.

The abrupt shuttering comes amid allegations that the lawyer, known as a go-to attorney for Lakewood, New Jersey, and Brooklyn real estate investors, has refused to hand over escrow funds. And filings obtained by The Real Deal show previously unreported links between the Nussbaum Lowinger LLP founder and the late Borough Park real estate investor Mendel Steiner.

Steiner died last week at age 33 sending shockwaves through the close-knit Orthodox Jewish real estate community. Steiner in his brief real estate career had amassed thousands of apartments throughout the country.

But Steiner reportedly struggled in recent years financially and faced at least one foreclosure in South Florida where he took on a high interest rate loan.

Rumors took off about Steiner’s sudden death. The Promote newsletter wrote that a lawsuit filed last week against Nussbaum was “important context to understand Steiner,” citing community sources.

“It has been a pleasure and privilege to work with you and serve as your counsel over the years,” said Nussbaum in an email sent out to clients obtained by TRD. “I value the connections we have made and the relationships we have formed and I am justifiably proud of the transactions we have consummated and closed together.”

Nussbaum said the firm has retained counsel, Ethan Kobre of Schwartz Sladkus Reich Greenberg Atlas, to represent it in the wind-down process. Anyone who had funds in the firm’s escrow account can contact Kobre, according to the email.

Scandalous conspiracy theories

The lawsuit filed in Rockland County by an entity connected to a nursing home manager Jacob Sod alleges Nussbaum failed to hand over $15 million in escrow money. The lender alleges the money was used by Nussbaum to “show capital” to evidence purchasing power.

“Mr. Nussbaum prefers not to comment on ongoing litigation at this time,” said Kobre in a statement to TRD.

Nussbaum responded this week to the lawsuit arguing that the plaintiff is suing the wrong party. His response suggests that the proper party is the borrower, a Delaware company called Georgetown Residents. Nussbaum was just the person who acted as signatory on the loan documents, according to his filing.

Nussbaum called the Sod’s complaint a “confused mess of scandalous conspiracy theories” in his legal filing.

TRD found that Georgetown Residents LLC has a direct tie to Steiner by digging through corporate records and lawsuits. Georgetown Residents’ Borough Park business address is used by the company, Aven Realty. Florida corporate records list Steiner as the authorized person for Aven Realty.

Aven Realty is reportedly one firm used by Steiner’s real estate ventures. The Georgetown Residents LLC is tied to a rental property in Lafayette, Indiana, owned by Steiner.

The full connection between Steiner and Nussbaum is unclear. According to Nussbaum’s response to the Rockland County lawsuit, the Steiner-linked Georgetown Residents were the recipients of the $15 million loan. The purpose of the loan was for “transacting business.”

Nussbaum alleges his law firms, Nussbaum Lowinger and Mark J. Nussbaum Associates, have no obligations under the loan documents.

Nussbaum’s name has appeared in deals and with dealmakers such as Shaya Prager’s Opal Holdings, Joel Schreiber, Moshe Silber, and Yoel Goldman.

Nussbaum is battling another lawsuit in New York Supreme Court alleging his law firm, Nussbaum Lowinger, hindered collection of a judgment in Florida. He has not yet responded to that lawsuit.