Report: Landlord of 1st Avenue building with Michael Jackson murals faces foreclosure

An East Village landlord is facing foreclosure on his building at 180 First Ave... on the SE corner of 11th Street. (On the far left above.)

 According to Crain's New York Business, investors in a $7.1 million mortgage allege that owner Moshe Khoshkheraman has not made a loan payment since May. 

A lawsuit filed Tuesday in Manhattan Supreme Court seeks to force an auction of the five-story building with the Michael Jackson murals on the north-facing wall, which arrived here in 2018.

Khoshkheraman purchased the property in 2022; it contains 16 apartments and a ground-floor commercial space, last home for a few weeks (for real) to UZ Grill House.

The lawsuit also alleges that Khoshkheraman refused to allow an investor-appointed inspector into the building in September, another condition of default under the loan agreement. 

Crain's reports that state housing records show none of the building's apartments are rent-stabilized. A renovated one-bedroom apartment last rented for approximately $3,600 a month in June.

Khoshkheraman has acquired several properties in recent years, including 51 E. Houston St., home to Milano's, the 146-year-old bar near Mott Street. 

The foreclosure action concerns only 180 First Ave. The report indicates no indication that Milano's or its building is affected.

On the sales market: 180 1st Ave., home of the dual Michael Jackson murals

The five-story residential building on the SE corner of First Avenue and 11th Street recently arrived on the sales market.

There are actually two buildings here at 180 First Ave. (it extends east on 11th Street). The five-story mixed-use buildings contain three retail units (with an unlicensed weed shop in the corner space) and 14 residential units.

The Marcus and Millichap listing notes: "The free-market units were all recently gut renovated and finishes include brand new appliances, in-unit washer and dryers, dishwashers, high ceilings, tons of natural light, smart-lock entry and a video intercom system."

The asking price is $11.850 million.

There is no mention of the mural by Brazilian artist Eduardo Kobra showing Michael Jackson as a child and adult... which arrived here in July 2018. Kobra said he wouldn't paint over the mural after the early 2019 allegations in which two former child performers described how Jackson sexually abused them while they were children.