Foreclosure Filed on Yonkers, NY, Self-Storage DevelopmentForeclosure Filed on Yonkers, NY, Self-Storage Development

Parkview Financial has initiated a foreclosure on a self-storage development in Yonkers, New York, being built by KCT, a business entity for the Lewin Family. The lender launched a Uniform Commercial Code, or a non-judicial foreclosure, on the developer’s interests in the unfinished property following maturity of the loan, according to a source.

KCT secured an $18.3 million construction loan from Parkview in 2022 for 1060 Nepperhan Ave., which it owns. The project was scheduled for completion in late 2023, but higher interest rates likely changed financial projections for the 949-unit facility. Though the borrower told Parkview it hoped to add another equity partner, it never happened, according to Parkview CEO Paul Rahimian. “We gave them a lot of opportunities to figure out solutions,” he said.

Despite a foreclosure auction slated for Jan. 16, the Lewin Family aims to keep the development moving forward. “[We] are and will be taking any measures necessary to proceed with the project as planned without any foreclosure occurring,” Kirk Lewin said.

The family has owned the property for more than three decades. It formerly housed their vitamin and supplement business, Health Products Corp. The family planned to invest $15 million to build an eight-story self-storage facility on the site that would be operated and branded by real estate investment trust CubeSmart, the source reported.

Related:Self-Storage Development and Zoning Activity: January 2025

KCT sought tax relief from Yonkers Industrial Development Agency. It was approved for a mortgage-recording tax exemption and a sales-tax exemption, according to the “Westfair Business Journal.”

Source: The Real Deal, Parkview Launches Foreclosure on Yonkers Site