Prana Investments‘ bet on rent-stabilized properties in New York Metropolis is popping right into a catastrophe.
The San Francisco-based agency faces at the very least 14 foreclosures lawsuits in opposition to its 550-unit multifamily portfolio within the Bronx and Higher Manhattan. Three lenders filed lawsuits in New York State courts previously 4 months, alleging that Prana’s entities owe over $56.6 million in unpaid loans and curiosity.
Peapack Personal Financial institution and Belief initiated the newest foreclosures actions in opposition to Prana. The lender alleged in 4 lawsuits filed in June that Prana defaulted on loans tied to 4 multifamily properties within the Bronx: 3021 Holland Avenue, 1694-1698 Selwyn Avenue, 4188 Barnes Avenue, and 689 East 187th Avenue.
Prana started defaulting on its month-to-month debt funds round March 2026, in response to the lawsuits, and Peapack claims Prana owes over $15.5 million in excellent loans. The lender additional alleges {that a} Prana entity defaulted on its assure, which Peapack claims was an unconditional assure.
Peapack’s lawsuits come months after ConnectOne Financial institution introduced seven pre-foreclosure lawsuits in opposition to the owner, alleging it owed $37.4 million, in response to PincusCo.
ConnectOne’s lawsuit detailed allegations just like these in Peapack’s lawsuits, including a declare that the owner grossly mismanaged its properties.
In a single lawsuit, ConnectOne alleges three Prana properties within the Bronx had amassed 302 violations with the Division of Housing Preservation & Improvement. At one other Prana property, 2609 Bainbridge Ave, the HPD issued an Rapid Emergency Declaration, citing “sustained in depth hearth, smoke, and water injury all through.”
Prana bought all however one in all its buildings topic to foreclosures previous to the Housing Stability and Tenant Safety Act in 2019. In complete, the agency, via varied LLCs, paid about $83 million, in response to property information.
The Housing Stability and Tenant Protection Act eradicated alternatives for landlords to boost rents on rent-stabilized items via renovations. The Federal Reserve’s transfer to hike rates of interest in 2022 solely compounded issues for landlords as did the town’s lease tips board vote final month to freeze the lease on rent-stabilized items.
Because of this, values on rent-stabilized buildings have plunged and banks have backed away from the asset class. Flagstar Bank, as soon as generally known as New York Group Financial institution and one of many largest lenders to the asset class, supplied simply $58 million of recent loans to rent-stabilized buildings in 2025, in response to evaluation by Bisnow.
The agency, which focuses on buying rent-regulated flats in Los Angeles and New York Metropolis, owns 3,692 residential items within the Huge Apple with about three-quarters of its properties situated within the Bronx, in response to PincusCo. It has acquired over $2 billion price of properties in additional than 30 years of operation, in response to its web site.
Prana stated in an announcement to The Actual Deal that it’s “actively negotiating with its lending companions to discover a path ahead.”
“Most of our companions perceive the problem of the second and are working with us towards accountable options,” the agency stated within the assertion.
Peapack declined to remark. Flagstar and ConnectOne didn’t return a request to remark.
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