Lightstone Management Faces Foreclosure at East Flatbush Apartment Building
By Isabelle Durso August 22, 2024 12:04 pm
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Greystone has started foreclosure actions against Berel “Barry” Farkas’s Lightstone Management for allegedly failing to pay up on its $28 million loan secured by an East Flatbush, Brooklyn, apartment building at 200 Linden Boulevard, court records show.
The lender, which provided the loan in January 2021, filed the case in Kings County Supreme Court on Wednesday, arguing that Lightstone has failed to repay the loan principal upon its maturity date of June 1, according to the court records.
PincusCo first reported news of the foreclosure notice. Spokespeople for Lightstone and Greystone did not immediately respond to requests for comment.
Lightstone, which is not affiliated with David Lichtenstein’s Lightstone Group, also allegedly “failed to make required monthly interest payments on the outstanding principal of the loan” after extending the loan’s original maturity date of Feb. 1, 2023, to June 2024, according to the court documents.
The 69-unit, 71,448-square-foot rental complex last sold for $2.1 million in February 2015, generating revenue of $2 million, PincusCo reported. The property was valued $13.6 million by the city in 2022.
The building was initially proposed as an eight-story residential and community facility building, according to a filing with the New York City Department of Buildings in 2015.
Lightstone, which has a portfolio of 117 residential units and 116,886 square feet of residential space in Brooklyn, currently has $73.9 million in debt with lenders Greystone, Ladder Capital and Orix Real Estate Capital, PincusCo reported.
Isabelle Durso can be reached at idurso@commercialobserver.com.
