Preferred Bank has begun foreclosing on Michael Paul Enterprises’ condominium building at 184 East 64th Street, according to court documents.
The California state chartered bank has a $22 million mortgage on the property, and president and CEO Michael Paul D’Alessio defaulted on the loan in February, according to a lawsuit the bank has filed against him. He still owes the bank $21.9 million, along with interest and fees, the suit says.
Earlier in April, investors sued D’Alessio, accusing him of misappropriating funds meant for projects on the Upper East Side, Long Island and Scarsdale, according to the Journal News.
Representatives from Michael Paul Enterprises and Preferred Bank did not respond to requests for comment.
The company recently sold a property assemblage at 163-167 East 62nd Street to Churchill Capital Management for $18.2 million. It had previously planned to build condos on the site.