The lender filed a lawsuit against New York State to seize 286 Fifth Avenue, a 12-story, 44,400-square-foot building. Crain’s New York Business reports. Blackstone acquired the debt following the collapse of Signature Bank in 2023.
The Chetrits are members of the high-profile investor family that owns several distressed properties in New York. The outlet could not reach them for comment.
The brothers have faced similar issues before. In 2024, debt dealer Maverick Real Estate Partners, which recently purchased other Chetrit properties at auction, attempted to foreclose on their SoHo property at 447 Broadway over an unpaid $14.7 million signature-issued loan. In that case, the Chetrits argued that Signature’s sudden failure deprived them of the opportunity to renegotiate terms.
That dispute was settled earlier this year for an undisclosed amount, suggesting they could make similar arguments again.
According to the new complaint, the Chetrits stopped making payments on the loan in December 2024. Blackstone issued a notice in May demanding repayment of the remaining principal — now $15.6 million — and future rents from tenants including a law firm, a psychology practice and an Arthur Murray Dance Studio.
The building is 95 percent leased at about $40 per square foot, but the owners are said to have failed to comply with the notice.
For decades, 286 Fifth belonged to the Kiamie family, led by Syrian immigrant and entrepreneur Najeeb Kiamie, whose Windsor Management still operates in the market. The Chetrits, through AB & Sons Group, appear to have co-owned the building with the Kiamies before taking full control.
AB & Sons signed an $11.1 million mortgage in 2007, and later the 2017 loan that is now in dispute. The building changed hands internally in 2022, with ownership transferring to an entity called Zhora State Equities.
Blackstone acquired a large portion of Signature’s loan portfolio in late 2023, including the debt associated with 286 Fifth Avenue. Court records show that AB & Sons members include Eli’s son, Abraham.
According to Crain, attorneys for the ownership entities declined to comment or were unavailable.
– Joel Russel
Read more
Chetrits mismanaged the Williamsburg hotel, the lender says in a lawsuit
A look inside the Chetrit family’s growing legal tangle
Maverick quietly acquires Chetrit stakes at its own auction
Isaac and Eli Chetrit are nearing the end of the Maverick nightmare
#Eli #Isaac #Chetrit #face #expulsion #Manhattan #Building