Chetrit, Moinian and Minskoff Lose Seventh Ave Towers

It’s the end of the line for the fracturing partnership behind a pair of Midtown office towers. 

The buildings at 500 and 512 Seventh Avenue have been returned to their lender in a foreclosure auction, according to court documents. The three major partners behind the buildings, Joseph Moinian, Edward Minskoff, and Joseph and Meyer Chetrit, all appear to be falling on hard times. 

Moinian and Minskoff haven’t been paying their legal bills, according to an attorney representing the two in the case. That attorney, Christian Becker with Kasowitz LLP, asked the court to allow him to withdraw as their counsel.

The primary reason was an “irretrievable breakdown of the attorney-client relationship,” according to court filings. But the fact that Moinian and Minskoff owe Kasowitz “a substantial balance of unpaid legal fees,” isn’t helping. 

The Chetrits, which had a 56 percent stake in the buildings, are also struggling with bills. This spring, Meyer Chetrit testified that his Chetrit Group was falling apart. Employees, attorneys, and lenders are all not being paid, while Meyer also faces mounting personal bills. He said he went into the firm’s offices, located in No. 512 of the now seized buildings, only to waste time. 

He valued the firm’s portfolio negative $80 million, far from the billion-dollar valuation earned less than four years ago. 

Much of the trouble for the two Chetrit brothers is due to personal judgments they are facing. The two are facing $31 million in judgments from an affiliate of Mack Real Estate Group, while Meyer has been ordered to pay a $132 million judgment to an affiliate of Maverick Real Estate Partners.

The debt on the Seventh Ave buildings now totals more than $356 million, according to court documents. The lender was aggressive in its pursuit, accusing the borrower of self-dealing. The Chetrit Group, the lender noted, had not been paying its $42,000 in rent for its offices at the property, which Meyer Chetrit confirmed in a separate deposition.

The lender also accused the borrower of transferring $1 million in security deposits to external accounts, including those associated with other Chetrit projects. 

The tower at 512 Seventh Avenue is a 45-story building with 544,300 rentable square feet, while No. 500 is an 18-story building with 676,500 rentable square feet. 228 West 38th Street, also included on the loan, is a five-story commercial building with 10,000 rentable square feet. 

The borrower had only 17 years left on its land lease. 

Neither Moinian, Minskoff nor Kasowitz LLP immediately responded to a request for comment Thursday. 

Read more

Three’s a crowd: Chetrit, Moinian, Minskoff entangled in self-dealing claims

“About to give the keys”: Chetrit, Moinian and Minskoff’s Midtown tower sent to foreclosure auction

Meyer Chetrit’s deposition shows how far family empire has sunk 

Chetrit lender alleges “intentional self-dealing” in foreclosure case, pushes for receiver