Chetrit Family Faces Financial and Legal Struggles

News Summary

The Chetrit family is embroiled in significant financial and legal troubles following the death of Jacob Chetrit. A lawsuit is claiming tens of millions in unpaid loans related to real estate ventures, including a $10 million loan for the Hotel Carter redevelopment. Meyer Chetrit, managing the Chetrit Group, faces foreclosure on a key property and additional legal claims for unpaid fees. The family’s financial difficulties extend across multiple properties, raising concerns about their future in the real estate market.

New York City – Legal and financial challenges have engulfed the Chetrit family, resulting from the death of Jacob Chetrit in January and the subsequent disputes over substantial personal loans related to their real estate ventures. A lawsuit filed by Jacob’s family against his brother Meyer Chetrit claims tens of millions of dollars in unpaid debts from loans that Jacob extended for various real estate projects, including a notable $10 million loan aimed at redeveloping the Hotel Carter located in Times Square.

Meyer and Joseph Chetrit, who together manage the Chetrit Group, are currently confronting potential foreclosure on the stalled redevelopment at 250 W. 43rd Street, where the Hotel Carter sits. Meyer has publicly acknowledged a total debt of $21.7 million to Jacob, which includes interest on loans taken out between 2017 and 2024. These loans were meant to address financial shortfalls in funding investments, capital contributions, mortgage payments, and construction costs related to their various properties.

The financial troubles extend beyond the Hotel Carter, encompassing a network of other properties across the United States, including assets in Illinois, Ohio, Louisiana, and two projects located in Florida—one a hotel in Miami Beach and the other a mixed-use development in Miami.

In addition to the family lawsuit, Meyer Chetrit faces a separate legal issue with an Upper East Side condominium association, where he has allegedly failed to settle approximately $300,000 in common charges since 2023. This financial strain comes in the aftermath of the Chetrit Group’s loss of the Hotel Bossert in Brooklyn Heights, which was sold at a court-ordered auction following a $177 million judgment over a pattern of missed loan payments.

Furthermore, Jacob Chetrit’s company, Chetrit Org., is presently involved in a foreclosure dispute with Blackstone concerning their office building located at 404 Fifth Avenue. Meyer and Joseph Chetrit are also under scrutiny for defaulting on a $31.5 million mezzanine loan related to the Hotel Carter. Mack Real Estate Group is pursuing a lawsuit to collect a personal guarantee of $6.5 million linked to this particular loan, which defaulted at maturity.

The Hotel Carter, which was bought for $192 million in 2015, has attracted notoriety for its unsavory reputation as perhaps the dirtiest hotel in New York. It is reported that the property will need upwards of $125 million in renovations to become viable as a hospitality business. In addition to the various loans and litigation, it has been revealed that the Chetrit Group owes around $420,000 in civil penalties for infractions related to the Hotel Carter, notably a penalty for failing to submit required facade reports.

Meyer Chetrit has cited ongoing financial difficulties that include debts attached to his personal properties, such as a condominium in the Upper East Side. The heirs of Jacob Chetrit have yet to be publicly identified following his passing, adding another layer of complexity to the family’s legal entanglements.

Meyer Chetrit’s legal team is currently attempting to negotiate postponements regarding upcoming court appearances related to debt settlements. As the situation unfolds, the Chetrit family’s legal and financial predicaments highlight the precarious nature of high-stakes real estate investments amid family dynamics and financial obligations.

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Additional Resources

• Crain’s New York: Meyer Chetrit Confesses to Owing Family
• Crain’s New York: Chetrits Risk Foreclosure on Hotel
• The Real Deal: Joe Chetrit Defaults on Hotel Carter
• Google Search: Chetrit Family Lawsuit
• Crain’s New York: NYC Brings Chetrit Group to Court
• Wikipedia: Real Estate in New York City