Olshan Properties Sued for Foreclosure on Rent-Stabilized Manhattan Buildings
Olshan Properties Sued for Foreclosure on Rent-Stabilized Manhattan Buildings
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July 25, 2025 | New York City
Community Preservation Corp. (CPC) has filed a foreclosure lawsuit against Olshan Properties, targeting two Washington Heights properties—385 and 395 Fort Washington Avenue—due to ongoing loan defaults. The buildings, mostly rent-stabilized, were purchased in 2017 for $40.1 million and financed by Signature Bank.
After Signature’s collapse in 2023, CPC and its partners acquired a large portion of the bank’s distressed rent-stabilized loan portfolio. Since that time, Olshan reportedly hasn’t made any payments on the $16.1 million prime loan and stopped paying on the $7.4 million subordinate loan in late 2023. The total outstanding debt now exceeds $40 million.
CPC alleges the borrower also failed to pay full real estate taxes or provide required rent rolls. Although the nonprofit generally aims to restructure distressed loans through rate relief and extensions, officials confirmed that foreclosure is a last resort—already pursued in over 40 cases involving 2,200 units.
The two buildings span nearly 57,000 square feet each and collectively include 116 apartments, 104 of which are rent-stabilized. Neither Olshan nor CPC responded to requests for comment.
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