Two apartment buildings on the Upper East Side are about to be seized.
New York-based Aulder Capital is planning a UCC foreclosure sale for the interests in a 37-unit multi-family assembly at 162-164 East 82nd Street. The sale is scheduled for November 3.
If the foreclosure sale is successful, Aulder can repossess the interest in the properties from owner 77 Varet Holding Corp., which is run by clothing entrepreneur Ruben Azrak.
Spearheading the sale is bankruptcy and foreclosure specialist Greg Corbin, President of Bankruptcy and Restructuring of Rosewood Realty Group.
Corbin said the property is desirable because more than two-thirds of the units are at market rates, giving the owner more freedom to raise rents. The value of stabilized rent buildings has fallen since 2019, when lawmakers in New York City passed the Housing Stability and Tenant Protection Act.
A company linked to Azrak bought the buildings from Harbor Group in 2017 for $ 19.4 million. That same year, Dime Community Bank took on a $ 10.5 million loan related to the building. Aulder bought the loan in June and started the foreclosure sale. Mannion Auctions manages the UCC procedure.
As part of the UCC sales process, Aulder must set an auction date on which third parties can bid. In most cases, lenders like Aulder make âcredit offersâ using their own debt to take control of the property.
The Upper East Side buildings add to a growing list of properties that lenders have sought to foreclose on UCC in recent months. Traditional mortgage foreclosures are still prohibited by New York State law.
Maverick Real Estate is planning a UCC sale for the building that houses the 80 St. Marks Theater in the East Village and SL Green Realty recently took control of 690 Madison Avenue from Ashkenazy Acquisition through a UCC foreclosure.