Merchants Bank Puts Leifer’s Former Conversion on the Market
Merchants Bank is looking to unload a Midtown apartment building that was caught in a three-year foreclosure battle with troubled landlord Abraham Leifer.
The bank, which took over the 39,000-square-foot building at 19 West 55th Street in July in a foreclosure sale, is eyeing a sale price in the low $20 million range. CBRE’s Dan Kaplan was tapped to market the property.
The vacant nine-story building between Fifth and Sixth avenues was built in 1920. Leifer was planning a conversion to luxury condos when Merchants Bank sued his Aview Equities in March 2023, seeking foreclosure following a string of forbearances.
Merchants alleged in the lawsuit that Leifer failed to repay the balance of a $36.7 million refinance loan, in addition to other defaults including failing to maintain a cash balance of more than $9 million.
A judgment of foreclosure was issued in July 2024 for about $49 million, plus interest and costs, according to court filings. Two foreclosure sales were postponed after the landlord filed for Chapter 11 bankruptcy protection. Both Chapter 11 filings have since been dismissed, said Leifer’s attorney Aaron Slavutin of Jacobs P.C.
Leifer bought the building from Salim Assa in 2018 for $50 million. He planned to transform the ground floor into retail, and add several new floors of residential space to the top of the building, boosting its area by 14,800 square feet.
The vertical extension was called off, however, and Leifer tapped Serhant broker Bernadette Brennan to unload the building for $42 million before Merchants Bank sued him.
Leifer was facing troubles at several other projects. In 2023, lender Parkview Financial filed a lawsuit in Brooklyn Supreme Court against Aview Equities over mortgages at a luxury multifamily development at 57 Caton Place totaling $66 million. That suit was settled.
In 2024, Leifer sold an unfinished hotel project in Downtown Brooklyn through bankruptcy. He has also been battling the owners of Prospect Park Stable over noise at that Caton Place project.
A lawyer for Merchants Bank did not immediately respond to a request for comment.
Read more
Abraham Leifer’s Midtown conversion facing foreclosure
Windsor Terrace stable owner cries foul at Abraham Leifer’s construction
Solly Assa sells Midtown apartment building following Airbnb settlement
