441 E. 12th St. and 199 Avenue A
Two longtime East Village landlords are facing foreclosure actions tied to four buildings in the neighborhood.
According to Crain's, Santander Bank has filed lawsuits alleging that owners David Jacobson and Michael Ricatto defaulted on mortgages at 441 E. 12th St., 199 Avenue A, 346 E. 13th St. and 520 E. 14th St.
The suits claim the landlords have not made payments since mid-2024, with roughly $50 million in fees and interest. now owed
The prewar walkups collectively contain 118 apartments, some of them rent-stabilized.
Crain's reports that the loans were originally issued in 2017 by Signature Bank, and that Santander acquired the debt in 2024.
Wow. And I thought I owed banks a lot of money.
ReplyDeleteGood chance these were predatory financing. Banks like Signature were happy to sign off on mortgages that could not be serviced based on the existing rent roll, only if rent-stabilized tenants were aggressively/illegally removed. Then the 2019 legal changes happened, dramatically reducing incentives to run out existing RS tenants, and a lot of people who were betting on being able to make a lot of money by driving people out of their homes were suddenly exposed.
ReplyDeleteWell, wouldn't that be a shame ;)
DeleteCould those buildings be converted to affordable co-ops?
ReplyDeletehttps://www.nyc.gov/site/hpd/services-and-information/affordable-neighborhood-cooperative-program-ancp.page
They will be owned by Santander that would sell them to highest bidder.
DeleteSame thought I was having.
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