It looks like the tip of the street for a Midtown workplace tower owned by an actual property energy trio.
The buildings at 500 and 512 Seventh Avenue, the place the lender accused the borrower of intentional self-dealing, shall be despatched to a foreclosures public sale to fulfill a $356 million debt, a New York Supreme Courtroom decide has ordered.
The property was owned by a partnership made up of brothers Joseph and Meyer Chetrit, Joseph Moinian and Edward Minskoff, with The Chetrit Group sustaining its workplaces in No. 512. The borrower agreed to not oppose the movement for foreclosures, in response to court docket paperwork.
The judgment of foreclosures is a loss for the buyers. It additionally underscores the obvious troubled waters that the Chetrits are dealing with, as they face personal judgments and plead poverty in court.
The borrower, formally referred to as 500-512 Seventh Avenue Restricted Partnership, acquired the leasehold for the property for $140 million in 1999. It took out $375 million towards the buildings in 2018. The lender filed a foreclosure suit in July 2025.
In a sworn deposition taken this spring, Meyer Chetrit acknowledged the problems on the Seventh Avenue property. An legal professional requested him how far alongside the corporate was within the foreclosures course of.
“Distant, about to present the keys,” he mentioned. “About to lose it already.”
Chetrit Group had a 56 p.c stake within the constructing, Meyer mentioned within the deposition, including that it had by no means paid the $42,000 hire on its workplaces there within the “4 or 5” years it had occupied the area.
Based on the lender, which took concern with Chetrit Group’s failure to pay, the event agency racked up greater than $1 million in again hire.
“[T]his failure by Borrower is proof of self-dealing or, at a minimal, extreme negligence and mismanagement by Borrower in its capability as sublessor in reference to the Mortgaged Property when taking into consideration that Guarantor Chetrit is an insider of Borrower,” an legal professional for the lender wrote to the court docket.
The lender had beforehand accused the borrower of self-dealing on the property, transferring $1 million in tenant safety deposits to outdoors funds, together with $300,000 to these for different Chetrit Group initiatives or associates. The borrower moreover had not been making month-to-month funds.
The constructing at 512 Seventh Avenue is a 45-story tower with 544,300 rentable sq. toes, whereas the five hundred property is an 18-story constructing with 676,500 rentable sq. toes. 228 West thirty eighth Road, additionally included on the mortgage, is a five-story business constructing with 10,000 rentable sq. toes.
Representatives for the Chetrits, Moinian and Minskoff didn’t instantly reply to a request for remark Monday.
Information of the foreclosures comes amidst different revelations concerning the Chetrit Group’s funds. Though the corporate nonetheless owns a lot of its New York actual property empire, Meyer and Joseph are dealing with greater than $163 million in private judgments.
The corporate has continued doing enterprise, together with inking refinancing offers. However within the spring deposition, Meyer told a tale of woe, testifying that the Chetrit Group was “dissolving” from lack of cash, workers and attorneys had not been paid, and that he was borrowing cash from household and pals so as to get by and pay for private bills.
When requested who’s supporting him financially, Meyer Chetrit answered, “No one.”
“God,” he added.
Learn extra
Chetrit lender alleges “intentional self-dealing” in foreclosure case, pushes for receiver
Lender alleges Chetrit Group not paying rent at HQ, endangering loan
As legal challenges mount, what’s next for the Chetrits?
Meyer Chetrit’s deposition shows how far family empire has sunk
