The original Barneys New York department store building in Chelsea is on the verge of foreclosure.
A limited liability company owned by Argentic Real Estate Investment has filed a lawsuit against 17th Street Property Owner, a shell company established by the owner of the former Barneys building at 115 Seventh Avenue, Ashkenazy Acquisition, a New York-based real estate investment firm.
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The court filing says Ashkenazy has failed to pay back a $46.2 million loan backed by the Chelsea building even though the loan matured in May. The lawsuit, filed with the state Supreme Court in Manhattan, seeks to foreclose on and sell the property.
Daniel Levy, Ashkenazy Acquisition’s president, did not return a phone message seeking comment. Lawyers representing Argentic declined to comment.
In 1923, Barney Pressman opened the first Barneys at the location. Over the years, the property changed hands several times, and in 2014, Ashkenazy purchased it from Rubin Museum of Art for $57 million, according to property records.
Sosa, a co-working company, operates the Global Cyber Center in partnership with New York City on the upper floors of the building. Cushman Wakefield’s Brandon Singer and Michael Cody are the leasing agents for retail space on the lower floors.
The building is next to Barneys New York’s Chelsea branch, which was closed in February after the luxury department store chain filed for bankruptcy last year.
Ashkenazy also owns Barneys New York’s Madison Avenue store, which also shut its doors in February.
Contact Akiko Matsuda at akiko.matsuda@therealdeal.com