The Davis Firms received a UCC foreclosures public sale for embattled mall mogul Mike Kohan’s Garment District office building, regardless of a last-ditch try by a bunch of Nice Neck buyers to cease the sale.
In a lawsuit filed Tuesday towards the mezzanine lender The Davis Firms, 17 buyers in a Kohan-controlled entity, most from the ritzy Lengthy Island enclave, alleged the foreclosures course of at 345 Seventh Avenue was faulty and will consequence within the property promoting for lower than its worth.
Their non permanent restraining order was denied and Davis Firms used a credit score bid to accumulate an fairness stake in 345 Seventh Avenue, placing it on a path to manage the property, the agency’s lawyer Leo Leyva stated.
The lawsuit lays out a broader sequence of allegations towards Kohan. The buyers allege that Kohan defrauded them by deceptive them into giving him greater than $80 million, promising membership pursuits in entities that owned actual property that included the Garment District workplace. As an alternative, they declare, Kohan created fraudulent working agreements and used them to safe financing with out giving the buyers the possession pursuits that they had been promised.
One mortgage at challenge is the mezzanine mortgage for 345 Seventh Avenue, which was acquired in July by The Davis Firms. Kohan allegedly “hid or omitted investor fairness, thereby deceiving each buyers and lenders,” in line with the lawsuit filed in state Supreme Court docket. When the buyers realized of the UCC sale, Kohan refused to supply paperwork so they might assess their rights, the swimsuit alleges.
Kohan and the lawyer for the buyers didn’t instantly reply to requests for remark.
A purchaser group together with Kohan, Katan Realty Group and Forest Hills-based Ilya Mikhailov acquired the 25-story, 190,000-square-foot constructing final 12 months for $85 million. The property was 39 p.c vacant on the time. The Davis Firms filed to foreclose on the properties in August, accusing Kohan of defaulting on a $73 million mortgage, falling behind on payments and failing to resolve constructing violations.
The foreclosures provides to a rising record of authorized and monetary troubles for Kohan. He was just lately eliminated as CEO and President and compelled off the board of administrators of Kohan Properties Ltd., his British Virgin Islands-based company, after the invention of an allegedly unauthorized $4.5 million mortgage on 5 Manhattan workplace properties and an extra $7.4 million in private withdrawals in July 2026, which raised about $112 million on the Israeli bond market.
A consultant for Kohan’s eponymous Nice Neck-based firm, Kohan Retail Funding Group, stated 345 Seventh Avenue is managed by an affiliate of Kohan individually.
Sam Lounsberry contributed reporting.
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