Cayre Group, Harry Adjmi Face Foreclosure in Boerum Hill

A pair of venerable New York real estate families are at risk of losing their grip on a Boerum Hill mixed-use property.

Wells Fargo filed a foreclosure lawsuit against CAC Atlantic LLC and its guarantors over a $60 million commercial mortgage on a property at 241 Atlantic Avenue in Brooklyn.

The loan was originally issued in December 2017 for $50 million and later increased by $10 million when a mortgage on the pair of applicable lots were consolidated. The property’s guarantors named in the lawsuit include Robert Cayre, Midtown Equities’ Joseph Cayre and A&H Acquisitions’ Harry Adjmi.

The bank filed the lawsuit after the borrower allegedly failed to repay the loan when it matured at the start of the year. The outstanding principal balance stands at approximately $57 million, according to court documents.

After the loan’s maturity date passed without payment, Wells Fargo sent a formal notice of default to the borrowers, according to the lawsuit. The bank is seeking to foreclose on both the property and related collateral.

The loan’s interest rate had previously been based on LIBOR but was converted to the Secured Overnight Financing Rate (SOFR) through an amendment in June 2023, according to the lawsuit. Following the default, the interest rate increased to approximately 10.33 percent.

The property also faces issues with the New York City Environmental Control Board, with outstanding violations totaling $9,000 issued between 2019 and 2023.

The bank is asking the court to approve a foreclosure sale of the property and to hold the borrower responsible for any remaining deficiency, along with legal fees and other costs.

Aurora Capital Associates, Robert Cayre’s firm, told Crain’s that the landlord is working towards a repayment plan and an extension is likely to be “finalized imminently.”

The 11-story, 125,000-square-foot building includes 74 luxury apartments and there are no vacancies at the moment, according to StreetEasy. The 23,000-square-foot retail footprint includes Marshalls, 7-Eleven and Planet Fitness.