Chetrit Avoids Foreclosure at LES Residential Site With Refinancing

Joseph Chetrit’s Chetrit Group has avoided foreclosure at its residential development site at 265-275 Cherry Street on Manhattan’s Lower East Side.

Chetrit has landed a refinancing for his planned two-tower, 1,313-unit apartment project in the Two Bridges neighborhood after defaulting on an $8 million mezzanine loan from Madison Realty Capital at the site in September.

Madison filed for UCC foreclosure after the default and intended to head straight to auction, but now Chetrit has extended his loan with Madison for one more year, according to The Real Deal, which first reported the news.

It’s unclear what the refinancing amount was. Galaxy Capital’s Henry Bodek, who arranged the deal, did not immediately respond to a request for comment.

A spokesperson for Madison also did not immediately respond to a request for comment, while Chetrit could not be reached for comment.

Chetrit previously secured a $63 million mortgage from Madison when he bought the land at Cherry Street for $78 million in 2022 from CIM Group and L+M Development Partners, as Commercial Observer previously reported.

Chetrit’s Two Bridges development site is one of four projects along the East River, which include Gary Barnett’s 851-unit apartment building at 252 South Street and his 765-unit residential tower at 259 Clinton Street through Extell Development.

It’s been a week of good news for Chetrit after his Upper East Side condominium tower development at 259 East 72nd Street moved forward with a new partner, rounding out its capital stack, as CO previously reported.

Simon Dushinsky’s Rabsky Group will join Chetrit in developing the 21-story, 54-unit luxury residential building, with the project expected to be completed in the next few years.

Isabelle Durso can be reached at idurso@commercialobserver.com.