A prominent mixed-use property just less than a mile from the George Washington Bridge in Fort Lee appears to still have major issues to work out as litigation looks like it will drag out into 2025 and beyond.
Back in June, ComputerShare Trust Company filed a foreclosure lawsuit stemming from a 291,000-square-foot office and apartment building at 2 Executive Drive in Fort Lee. New York-based The Chetrit Group bought the nine-story property in 2008 for $86 million and redeveloped it, taking out a $54 refinancing mortgage last year per the Commercial Observer.
The brick building consists of five floors of retail suites, 84 apartments, and an eight-story parking garage. Trouble began to emerge earlier this year when Traded reported that the mortgage was transferred to special servicer K-Star Asset Management due to various defaults.
The foreclosure complaint in Bergen County Superior Court claims that Chetrit stopped making payments in August last year and ignored eight notices of default sent by the lender. The lawsuit additionally claims there are several construction liens filed against the building from contractors that have not been paid, totaling about $1 million.
The complaint also claims maintenance issues currently exist at the property including the inoperability of the freight elevator; deteriorated state of the parking garage; and inadequate electricity due to arrears owed to PSE&G plus past due utility bills to Veolia Water.
All told, the foreclosure complaint alleges that the building has about $62.6 million in debt. A recent court filing from the lender additionally claims that the building had 37 outstanding violations that have now been settled with the Borough of Fort Lee.
The Chetrit Group countersued ComputerShare after the foreclosure complaint was filed, alleging that the company mismanaged funds and allowed the building to fall into disrepair. But according to court records, they agreed to transfer $511,000 in security deposits from tenants at their building towards the amount owed earlier this year.
As of December 12, council for ComputerShare claims that “none of this amount has been transferred” in a legal brief to the judge overseeing the case. A new date for further proceedings has not been set, ensuring that the saga at 2 Executive Drive will continue in 2025.
The property is fairly notable even considering Fort Lee’s fairly developed landscape, as it is situated on a side street just off major highways like Route 4, I-95 and just about a mile away from the George Washington Bridge.
