Jeremy Morton brought on a stir when he picked up two items of prime retail area in Sag Harbor a few yr in the past.
The developer has been a quiet participant within the East Finish’s restaurant and industrial scene in recent times. He bought native hotspots Ruschmeyer’s and Rick’s Crabby Cowboy Café in 2020 and 2021, respectively, and acquired — and later sold — Morty’s Oyster Stand in Montauk.
In 2024, he made headlines when he spent $8.4 million on Southampton Village’s largest industrial property on a chief nook, and sparked extra consideration later that yr when he paid $30 million for two properties in downtown Sag Harbor. However while he pursues multi-million-dollar redevelopment plans for the positioning, lenders have claimed Morton stopped repaying the money owed.
Atlanta-based U.S. Strategic Capital, a short-term lender to small companies, filed a lawsuit this month to foreclose on two of Morton’s East Hampton properties. The swimsuit, filed in Suffolk County, claimed his growth agency, Excelsior Growth NY, defaulted on a $3.8 million mortgage from July.
Morton personally assured the mortgage, permitting USSC to pursue the developer’s private belongings if a possible foreclosures sale doesn’t cowl his money owed, which the swimsuit locations at greater than $4 million.
A foreclosures sale would additionally must cowl the senior loans on Morton’s houses, based on the grievance. The developer took out a mortgage of over $5 million final March on the property at 38 Chatfields Ridge Street, which seems to be one among his private residences. He additionally took out a mortgage with a principal quantity of round $3.8 million in 2023 on the house at 126 Lengthy Lane.
“I’m addressing these issues within the unusual course,” Morton mentioned in a press release. “I take my obligations critically and can proceed to work constructively with all stakeholders as points are evaluated and resolved.”
Nonpayment accusations land on native developer
Sooner or later after USSC’s lawsuit, Morton was hit with one other grievance, claiming he defaulted on roughly $200,000 value of small enterprise loans that he personally assured in 2021. The loans have been tied to an entity with the identical tackle as Provisions Pure Meals, an area grocery chain with places in Sag Harbor and, previously, Water Mill. The Water Mill retailer announced in 2024 that it could not be reopening, and would as an alternative debut a brand new department on the Southampton industrial nook Morton purchased in 2024.
The motion adopted a roughly $330,000 judgment secured by a constructing provides firm in opposition to Morton’s growth agency final month over unpaid supplies bought final summer season. Morton personally assured the debt and signed a confession of judgment, permitting the judgment to be entered in opposition to him.
The 2 lawsuits and confession of judgment declare that Morton stopped making funds — for the provides and on his loans — in November.
It was round this time that Morton’s growth agency took out a money advance from Merely Funding, a supply of short-term capital that buys discounted receivables from firms. Merely Funding paid Morton $310,000 for $415,000 value of receivables, requiring him to repay roughly $10,000 every month till hitting the $415,000 he owed, based on paperwork in a lawsuit filed final month by Merely Funding.
However Morton solely made it two weeks earlier than he stopped making funds, Merely Funding claimed. The developer additionally signed a confession judgment and personally assured the quantity owed, which is nearly $400,000, based on a courtroom judgment.
All advised, Morton has personally assured roughly $5 million in loans and different money owed within the final yr, based on these 4 filings.
For now, Morton is advancing on his plans to redevelop the downtown Sag Harbor retail properties at 2 Fundamental Road and 22 Lengthy Island Avenue. He secured a $40 million loan in February 2025 from Mavick Capital to fund the acquisition and redevelopment of the properties.
However past showing at native conferences to curry favor and talk about his plans for the properties, the developer has averted making public waves for his tasks. He beforehand declined to verify the acquisition to 27East.
“Individuals are shopping for properties within the Hamptons daily,” he told the outlet. “Is there some form of obligation for the media to write down about it?”
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