Christopher Milito Blocks the Foreclosure Sale of $100M+ Long Island City Mall
June 5, 2019 – Morrison Cohen attorneys Christopher Milito and Dupe Adegoke secured an emergency stay order in New York State’s Commercial Division blocking the assignment of a ground lease at a scheduled foreclosure sale. The Firm’s client, the landlord under the ground lease of a 5.5-acre mall in Queens, moved to intervene in a foreclosure action brought by a leasehold mortgage lender to recover its $38 million loan to the ground tenant. That lawsuit resulted in a foreclosure judgment and a scheduled auction of the ground lease. Shortly before the auction date, the lender expressed its intent to dishonor the landlord’s consent rights over assignments, which included foreclosure assignments. Supreme Court Justice Leonard Livote issued the order staying the closing of any sale of the ground lease to a third party as potentially violative of landlord’s rights.
The case is pending in Queens County Supreme Court under Index Number 716418/2017.