An actual property investor with ties to embattled legal professional and dealmaker Mark Nussbaum is waving the white flag after getting hit with a barrage of lawsuits and foreclosures.
Monsey, New York-based investor Jacob Tauber quickly assembled a portfolio of workplace and mixed-use business properties in Newark, New Jersey, between 2018 and 2019, earlier than transferring on to Chicago to do enterprise along with his father and Nussbaum. However Tauber filed for Chapter 7 chapter twice within the final 12 months, claiming to have $119 million in liabilities from unsecured money owed and authorized judgments together with foreclosures in opposition to his New Jersey actual property portfolio.
On the similar time, a portfolio of South Facet Chicago multifamily buildings tied to him, his father Eli Tauber and Nussbaum, can also be dealing with a tidal wave of foreclosures complaints.
Jacob Tauber’s November chapter submitting lists his earnings as $25,000 per 30 days and his private property as $3 million in worth. He additionally agreed to forfeit a $32,000 Piaget watch and his father has paid for $27,500 in authorized charges on his behalf, in keeping with the submitting.
Multi-state misery
The chapter is halting foreclosures on most of Jacob Tauber’s rental houses in Airmont, New York, and his Newark, New Jersey, business properties. Nevertheless it doesn’t seem to have impacted the continued Chicago foreclosures as a result of his father’s title is on the deeds and mortgages related to the properties.
Although Jacob Tauber’s title doesn’t seem on property data tied to the Chicago properties, different documentation factors to his involvement with the buildings.
Eli Tauber and Nussbaum, who’s each an legal professional and investor, purchased a slew of Chicago multifamily properties by way of their firm, Straightline Administration. Jacob Tauber can also be concerned with Straightline, in keeping with folks aware of the buyers.
His title additionally comes up in separate authorized filings involving Nussbaum, who talked about he doesn’t know the precise state of his Chicago properties however that a few of his actual property with the youthful Tauber had been bought or transferred.
Lenders in Chicago have filed at least 33 foreclosures in opposition to LLCs managed or managed by Eli Tauber and Nussbaum totaling greater than $27 million in allegedly defaulted mortgage debt.
Because the buyers turned unwilling or unable to fund obligatory repairs, tenants of the distressed residences had been usually left in deteriorating dwelling circumstances, metropolis code violations present.
In the meantime, Nussbaum made headlines after he was hit with criminal charges a couple of 12 months in the past from Manhattan’s District Legal professional’s workplace for allegedly stealing at the very least $15 million from his legislation agency’s escrow accounts. He has pleaded not responsible. Extra not too long ago, Nussbaum additionally revealed through authorized filings in a separate civil swimsuit that he diverted over $330 million of escrow funds.
Eli and Jacob Tauber haven’t been accused of prison misconduct.
Jacob Tauber and an legal professional representing him within the chapter submitting, and an legal professional representing Mark Nussbaum, didn’t reply to requests for remark. Jacob Tauber’s legal professional, who was paid by Eli Tauber, additionally didn’t reply to requests for touch upon Eli’s behalf.
Jacob Tauber’s troubled timeline
Earlier than the Taubers made an enormous splash in Chicago, the youthful Tauber was specializing in New Jersey actual property. In Newark, Jacob Tauber bought over two dozen properties between 2018 and 2019. Most of them had been small workplace buildings with ground-floor retail area or empty tons.
However he bumped into hassle on his New Jersey offers in 2019 and 2020 when he stopped making mortgage funds towards a number of of the mortgages.
In a single case, he took out an $11 million building mortgage to redevelop two business properties on Broad Road in downtown Newark however didn’t full the work, data present.
A judicial sale was accomplished for the property however as a result of it didn’t cowl the price of the unpaid debt, a decide ordered Jacob Tauber to pay an extra $8 million to the lender.
In different circumstances, he’s combating again. In 2022, he filed a lawsuit in opposition to certainly one of his lenders, Brooklyn-based Yosef Brezel, alleging he improperly pursued a $25 million foreclosures in opposition to a number of of his Newark properties. Within the unique lawsuit, a decide entered a $37 million judgment in opposition to Tauber, which he has not paid, in keeping with courtroom data.
In whole, Tauber has 12 excellent civil lawsuits, in keeping with his chapter submitting. A number of lenders have already filed requests to have a decide raise automated chapter stays positioned on their foreclosures proceedings, data present.
Up to now, a kind of motions has been granted, permitting lenders to proceed with the foreclosures of certainly one of Tauber’s three rental houses in Airmont, New York.
