A&E Real Estate, one of New York City’s largest private landlords, is facing foreclosure at 1080 Amsterdam Avenue, near Columbia University, after allegedly defaulting on a $29 million loan.
Apex Bank filed suit in Manhattan Supreme Court this week, accusing A&E of missing three months of payments on the mortgage and violating other loan terms, Crain’s reported. Apex is seeking to seize and sell the 20-story, 96-unit tower to recover the $28.3 million still owed, plus interest and fees.
A&E could also be liable for any shortfall if the property’s sale doesn’t cover the debt. The landlord, led by co-founder and CEO Douglas Eisenberg, has not yet responded in court but said it is working with the lender to reach a resolution that won’t affect tenants.
“This is part of an ongoing negotiation and does not affect the operations of the building. We are working with our lender toward a resolution that best serves all parties,” the company said in a statement. “A&E continues to maintain the highest standards for our residents at 1080 Amsterdam.”
The prewar building on West 113th Street, once staff housing for St. Luke’s Hospital, includes a mix of market-rate and rent-stabilized apartments, an increasingly thorny combination since the 2019 rent law overhaul limited rent hikes and removed deregulation pathways.
That law has been blamed for squeezing returns and eroding valuations across the stabilized rental sector, where A&E holds a large footprint.
The property last traded in 2022, when A&E bought it from SL Green Realty for $42.7 million, financing the deal with the Signature Bank loan now in dispute. Following Signature’s 2023 collapse, the note was transferred to an FDIC-linked entity and then to Apex last summer. Available units range from $4,500 to $8,400 a month.
The suit marks the latest sign of distress for the firm, which controls roughly 20,000 apartments citywide.
Earlier this month, another lender sued over an alleged $165 million default tied to a dozen Queens apartment buildings (A&E successfully reached a deal with the bank). The company is also fighting a potential foreclosure at Harlem’s 3,500-unit Riverton Square over a $506 million debt.
— Holden Walter-Warner
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