LBC2 Trust, an entity affiliated with Minnesota-based Stillwater Asset Management, filed suit this week in Manhattan Supreme Court, alleging that Fred, Benjamin and Jonathan Ohebshalom failed to pay off the loan when it expired in October, despite three previous extensions. reported. The family is still owed approximately $10.1 million, according to court records.
Stillwater asks the court to authorize a public auction if the debt is not repaid.
The nine-story, 31,000-square-foot building is located between Second and Third avenues and houses Sky Management, the company that operates many of the Ohebshaloms’ apartments. Other tenants include Trooper Fitness and FiftyFour NYC, a bar mitzvah venue.
The property is 96 percent leased and boasts rents of about $40 per square foot, according to CoStar data cited by Crain’s.
The family has a history of running roughshod over both lenders and municipal regulators.
In 2022, Stillwater filed a similar foreclosure lawsuit on the same property before striking a deal that extended the payout date by two years. The Ohebshaloms have also racked up numerous city violations in their multifamily portfolio due to elevator failures and other maintenance issues.
Reached at Sky Management, Jonathan Ohebshalom declined to comment for publication.
The Midtown property has changed hands over the years, mostly within the family. Records show the Ohebshaloms acquired it in 2007 for $7.7 million through Majestic Realty Associates, then sold a 50 percent stake to Gemini Partners Realty for $7.3 million in 2016; Fred Ohebshalom was listed as manager of both entities.
Sterling National Bank originated the $12.6 million mortgage in 2018, which was later assigned to Stillwater following Webster Bank’s merger with Sterling in 2022.
— Holden Walter Warner
Read more
Fred Ohebshalom is facing exclusion from the Midtown office
Lender is taking back the building from Richard Ohebshalom’s Pink Stone Capital
Fred Ohebshalom avoids bankruptcy and gets refi for Fifth Avenue Hotel
#Ohebshaloms #facing #exclusion #Midtown #headquarters