Greystone Initiates Foreclosure on Lightstone's 69-Unit Brooklyn Apartment Property after $28M Loan Maturity

Greystone has begun foreclosure proceedings against Berel "Barry" Farkas's Lightstone Management due to an alleged default on a $28 million loan. The loan, secured by an apartment building located at 200 Linden Boulevard in East Flatbush, Brooklyn, was provided by Greystone in January 2021.

Loan Default and Legal Action

The legal action was filed in Kings County Supreme Court after Lightstone Management allegedly failed to repay the loan principal by its maturity date on June 1, 2024. According to court records, the company also missed required monthly interest payments after extending the loan’s original maturity date from February 1, 2023, to June 2024.

Property and Financial Background

The property in question is a 69-unit, 71,448-square-foot rental complex, which was last sold for $2.1 million in February 2015. In 2022, the city valued the building at $13.6 million. Initially proposed as an eight-story residential and community facility, the building is part of Lightstone Management’s Brooklyn portfolio, which includes 117 residential units and 116,886 square feet of residential space.

Lightstone’s Financial Obligations

Lightstone Management, distinct from David Lichtenstein’s Lightstone Group, reportedly carries a total of $73.9 million in debt with various lenders, including Greystone, Ladder Capital, and Orix Real Estate Capital. As of now, neither Lightstone nor Greystone has commented on the foreclosure proceedings.