Lender tries to seize Toby Moskovits’ Bronx apartment project

Case

As lender Be-Aviv sees it, Heritage Equity Partners has defaulted on its land loan at the proposed 105-unit apartment project, entitling Be-Aviv to seize ownership for itself. But Heritage sees a totally different dress. From the developer’s point of view, Be-Aviv never provided the funding it promised in the first place. And Heritage, though it did default on the first loan, knows of no formal foreclosure process underway that would give Be-Aviv any right to take over the Mott Haven project.

Result

For now, the process, like Moskovits’ apartment tower, is stalled. Heritage has not given Be-Aviv access to its books as it maintains the lender has no right to assume control. And without an inside look at the full extent of the project’s liabilities and assets, the restructuring can’t move forward. Heritage’s initial lawsuit against Be-Aviv is pending a default judgment, as the lender has been unresponsive to it, according to a source familiar with the case. Meanwhile, Buchwald, the firm’s bankruptcy counsel, plans to subpoena Heritage’s records on the tower, although the timeline and feasibility of such an order remain unknown.



Media coverage: TheRealDeal