Davis Companies Wins UCC Sale For Kohan’s 345 Seventh Avenue

The Davis Companies won a UCC foreclosure auction for embattled mall mogul Mike Kohan’s Garment District office building, despite a last-ditch attempt by a group of Great Neck investors to stop the sale.

In a lawsuit filed Tuesday against the mezzanine lender The Davis Companies, 17 investors in a Kohan-controlled entity, most from the ritzy Long Island enclave, alleged the foreclosure process at 345 Seventh Avenue was defective and could result in the property selling for less than its value.

Their temporary restraining order was denied and Davis Companies used a credit bid to acquire an equity stake in 345 Seventh Avenue, putting it on a path to control the property, the firm’s attorney Leo Leyva said.

The lawsuit lays out a broader series of allegations against Kohan. The investors allege that Kohan defrauded them by misleading them into giving him more than $80 million, promising membership interests in entities that owned real estate that included the Garment District office. Instead, they claim, Kohan created fraudulent operating agreements and used them to secure financing without giving the investors the ownership interests they had been promised.

One loan at issue is the mezzanine loan for 345 Seventh Avenue, which was acquired in July by The Davis Companies. Kohan allegedly “concealed or omitted investor equity, thereby deceiving both investors and lenders,” according to the lawsuit filed in state Supreme Court. When the investors learned of the UCC sale, Kohan refused to provide documents so they could assess their rights, the suit alleges.

Kohan and the attorney for the investors did not immediately respond to requests for comment.

A buyer group including Kohan, Katan Realty Group and Forest Hills-based Ilya Mikhailov acquired the 25-story, 190,000-square-foot building last year for $85 million. The property was 39 percent vacant at the time. The Davis Companies filed to foreclose on the properties in August, accusing Kohan of defaulting on a $73 million loan, falling behind on bills and failing to resolve building violations. 

The foreclosure adds to a growing list of legal and financial troubles for Kohan. He was recently removed as CEO and President and forced off the board of directors of Kohan Properties Ltd., his British Virgin Islands-based company, after the discovery of an allegedly unauthorized $4.5 million loan on five Manhattan office properties and an additional $7.4 million in personal withdrawals in July 2026, which raised about $112 million on the Israeli bond market.

A representative for Kohan’s eponymous Great Neck-based company, Kohan Retail Investment Group, said 345 Seventh Avenue is controlled by an affiliate of Kohan individually. 

Sam Lounsberry contributed reporting.

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