The Ohebshalom household, certainly one of New York’s extra controversial landlord clans, is going through foreclosures on its Midtown headquarters after allegedly defaulting on a $12.6 million mortgage tied to 226 East 54th Road.
LBC2 Belief, an entity affiliated with Minnesota-based Stillwater Asset Administration, filed go well with this week in Manhattan Supreme Courtroom, claiming Fred, Benjamin and Jonathan Ohebshalom did not repay the mortgage when it matured in October regardless of three prior extensions, Crain’s reported. The household nonetheless owes about $10.1 million, in response to courtroom filings.
Stillwater is asking the courtroom to authorize a public public sale if the debt isn’t repaid.
The nine-story, 31,000-square-foot constructing sits between Second and Third avenues and homes Sky Administration, the agency that operates most of the Ohebshaloms’ condo holdings. Different tenants embrace Trooper Health and FiftyFour NYC, a bar mitzvah venue.
The property is 96 % leased, boasting asking rents round $40 per sq. foot, in response to CoStar information cited by Crain’s.
The household has a historical past of skirting near the sting with lenders and metropolis regulators alike.
In 2022, Stillwater brought a similar foreclosure action over the identical property earlier than putting a deal that prolonged the payoff date by two years. The Ohebshaloms have additionally racked up quite a few metropolis violations throughout their multifamily portfolio for elevator breakdowns and different upkeep points.
Jonathan Ohebshalom, reached at Sky Administration, declined to remark to the publication.
The Midtown property has modified arms — largely inside the household — over time. Data present the Ohebshaloms acquired it in 2007 for $7.7 million by means of Majestic Realty Associates, then bought a 50 % curiosity to Gemini Companions Realty for $7.3 million in 2016; Fred Ohebshalom was listed as supervisor of each entities.
Sterling Nationwide Financial institution originated the $12.6 million mortgage in 2018, which was later assigned to Stillwater after Webster Financial institution’s merger with Sterling in 2022.
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