Client Granted Summary Judgment on Senior Mortgage Foreclosure

Congratulations to client Arch Companies affiliate Nostrand Senior Lender LLC, which was granted summary judgment on a $70 million senior mortgage foreclosure against defendant Hello Nostrand LLC, an entity that owns and is developing a mixed use complex at 1580 Nostrand Avenue in the Flatbush neighborhood of Brooklyn.  

On April 19, 2023, Hon. Lawrence Knipel of Kings County Supreme Court granted summary judgment to Nostrand Senior Lender, and further voided a long term lease that had been placed on the property, finding the lease “a thinly veiled attempt to avoid consequences of soon to be commenced UCC sale/foreclosure.” Partners Y. David Scharf and Gayle Pollack and Associate Jaimie Fitzgerald represent Nostrand Senior Lender in this action, captioned Nostrand Senior Lender LLC v. Hello Nostrand LLC, Kings Cty. Sup. Ct. Index No. 524162/2022.

This is Morrison Cohen’s second great outcome for Arch in the last several weeks. On March 28, 2023, Morrison Cohen obtained a preliminary injunction for Arch affiliate Myrtle Point MM JV LLC, preventing a partner in the Myrtle Point development from devaluing collateral supporting that partner’s capital obligations to the development. Partners Y. David Scharf and Gayle Pollack and Associate Richard Fusco represent Myrtle Point MM JV in this action, captioned Myrtle Point MM JV LLV v. Meir Babaev, New York Cty. Sup. Ct. Index No. 650869/2023.