Harlem Real Estate Portfolio Faces $47.9M Foreclosure

Harlem Real Estate Portfolio Faces $47.9M Foreclosure

Elena Vasilevsky
2 min read

Harlem Real Estate Portfolio Faces $47.9M Foreclosure

Mack Real Estate Group's acquisition of a Harlem real estate portfolio previously owned by Emerald Equity Group is in jeopardy as Freddie Mac and Sabal Capital Partners file a $47.9 million pre-foreclosure. This 10-building portfolio, situated on East 103rd and East 106th Streets, is predominantly rent-stabilized, with 84% of its units falling under these regulations. The impact of changes in rent laws and post-Covid economic challenges has exacerbated the financial strain on this portfolio. The transfer to Mack Real Estate occurred after Emerald Equity defaulted, marking a pattern of financial difficulties for the former owner related to their rent-stabilized properties.

Key Takeaways

  • Mack Real Estate's Harlem portfolio faces a $47.9 million pre-foreclosure initiated by Freddie Mac and Sabal Capital.
  • Previously owned by Emerald Equity, the 10-building East Harlem rental portfolio is now under Mack Real Estate's ownership.
  • Approximately 84% of the portfolio's units are rent-stabilized, presenting financial challenges exacerbated by changes in rent laws and the economic impact of Covid-19.
  • Former owner Isaac Kassirer has experienced multiple foreclosures and bankruptcies related to rent-regulated properties.
  • Mack Real Estate Group has been involved in multifamily acquisitions and foreclosures, including the famous Brill Building.


The foreclosure of Mack Real Estate Group's Harlem portfolio, characterized by its heavy concentration of rent-stabilized units and its acquisition from Emerald Equity, highlights the financial strain experienced by real estate firms in the post-Covid era. Changes in rent laws and economic downturn have heightened the challenges faced by such portfolios, resulting in potential financial losses for Mack Real Estate and potential disruption for tenants. This event could prompt a reevaluation of investment strategies in rent-regulated properties and influence future acquisitions in the sector. Additionally, it poses recovery risks for lenders Freddie Mac and Sabal Capital, potentially impacting their lending practices.

Did You Know?

  • Freddie Mac: A government-sponsored enterprise chartered in 1970 to stabilize the residential mortgage market and expand opportunities for homeownership and affordable rental housing. It purchases mortgages on the secondary market and sells them as mortgage-backed securities to investors.
  • Sabal Capital Partners: A diversified financial services firm specializing in real estate lending and investment, offering services such as loan origination, underwriting, and servicing for small-balance commercial real estate loans across various property types.
  • Rent Stabilization: A form of rent control that restricts landlords' rent charges and eviction capabilities, aiming to provide affordable housing by preventing excessive rent increases and maintaining housing stock for lower-income residents.

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