Eran Polack’s troubled HAP Investments misplaced management of three Harlem rental buildings and his agency seems to have shuttered totally.
The industrial actual property lender Ladder Capital, which was owed roughly $69 million, submitted $1 million credit score bids for every of the buildings at 2211 Third Avenue, 329 Nice Avenue and 2338 Second Avenue at an public sale final month. The trio of multifamily properties was a part of HAP’s once-ambitious push into Higher Manhattan. The foreclosures sale was first reported by PincusCo.
The foreclosures provides to the mounting troubles for HAP. A whole bunch of Israeli buyers misplaced a collective $70 million after Madison Realty Capital seized management in 2024 of the developer’s failed HAP Seven condominium mission at 4452 Broadway in Washington Heights. HAP founders Nir Amsel, Amir Hasid and Polack later knowledgeable buyers that the property was formally transferred to Madison following Chapter 11 proceedings in state court docket, in accordance with Ynetnews.
Now HAP’s web site seems to be down and the cellphone quantity affiliated with the enterprise has been disconnected. All the New York properties listed on its web site in November seem to have been offered or misplaced to foreclosures.
Just a few years in the past, HAP was advertising and marketing the three Harlem leases — together with one other property — for a mixed $130 million. In 2019, itemizing dealer James Nelson of Avison Younger stated many of the portfolio’s 171 newly constructed flats had been free-market items. Two of the buildings embody inexpensive housing, whereas the 30-unit property at 2338 Second Avenue was slated to obtain a 421a tax abatement upon completion.
The debt dates again to a $64 million mortgage originated in December 2021 by Allegiant Capital Funding and later assigned to an entity tied to Ladder. The lender moved to foreclose in 2024, alleging the mortgage had gone into default with $60.9 million in unpaid principal, plus curiosity.
In its state Supreme Court docket criticism, the lender stated Polack and an affiliated entity are listed as guarantors and will face recourse for sure losses.
Along with HAP’s web site and cellphone being down, Polack now lists himself as CEO of HAP Development on LinkedIn. He didn’t reply to a number of requests for remark. Attorneys for Ladder additionally didn’t reply.
Learn extra
Israeli investors lose $70M on HAP’s Washington Heights project
Madison Realty takes over HAP’s Washington Heights project
HAP Investments pitching East Harlem rental portfolio as $130M upside play
