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Chetrit refinances Two Bridges project site, ends foreclosure threat

Pabio November 22, 2024

The Chetrit Group has secured refinancing for its 1,300-apartment, two-tower development in Two Bridges, ending a foreclosure by Madison Realty Capital.

Chetrit invested more equity to extend his loan with Madison Realty for another year. Henry Bodek of Galaxy Capital negotiated the deal.

The lender had initiated a UCC foreclosure on Chetrit’s interest in the development site located at 265-275 Cherry Street. Madison alleged that Chetrit defaulted on an $8 million mezzanine loan she used to finance the acquisition of the property.

Chetrit purchased the site for $78 million in 2022 from CIM Group and L+M Development Partners. Chetrit secured a $63 million first mortgage and mezzanine loan from New York-based Madison Realty, a frequent Chetrit lender.

Chetrit also recently refinanced two of his South Florida properties with Madison Realty. Both properties were also facing UCC foreclosure by Madison Realty.

Joseph Chetrit and his relative Jacob have agreed to inject a significant amount of capital to refinance and extend their loans on the 121-unit Pompano Beach condominium project and redevelopment of the century-old Hollywood Beach Resort.

The Chetrit site in Lower Manhattan was one of four Two Bridges sites with planned skyscrapers. The developers were delayed about two years because of opposition from local groups and lawmakers, who unsuccessfully argued in court that the projects required rezoning by the City Council. The de Blasio administration has defended its decision to allow these developments.

UCC foreclosures are non-judicial foreclosures that allow lenders to foreclose on a property within 60 days instead of a lengthy court process. Lenders often initiate UCC foreclosures to bring holdout borrowers to the table and force them into a deal.