Setai Wall Street Condo with $300K Lien Heads to Auction

591-square-foot condo in Manhattan’s Financial District set for auction with a lien of $331,679. The auction will take place at 2 PM June 26, 2019 at 60 Centre Street, Room 130.

Located in the prestigious Setai Wall Street luxury condominium tower, 40 Broad Street #24C was originally purchased in 2011 for $474,102. No mortgage was taken out at purchase, however, in early 2016 a $500,000 mortgage loan was secured from 40 Broad Street Portfolio, the plaintiff in the foreclosure suit. A lis pendens was first filed against the property in 2019, with final judgement handed down earlier this year in April, thus leading to the foreclosure of the property.

40 Broad Street #24C has been embroiled in the legal battles of Vneshprombank, a Russian-owned VIP bank favored by Russian companies and oligarchs. The bank was declared bankrupt back in 2016, as the bank’s former president, vice-president and co-owner  were indicted on various embezzlement charges. In fact, the former bank president was accused of appropriating bank funds, which were then used to purchase apartments in multiple luxury condo projects through various corporate entities.

Those purchases included units not only at 40 Broad Street, but 50 Riverside Boulevard and 10 West End Avenue as well, and were used as collateral for loans taken in 2015 and 2016. Unit 24C was one of three apartments owned by companies associated with the former bank president.

A Comps search shows the estimated value of 40 Broad Street #24C at $694,000, more than twice what is owed. The estimate was determined by the sale price of 131 similar properties that recently traded hands within a half-mile radius. Unit 22C, just 6 square feet smaller than #24C, is currently listed for sale with an asking price of $649,000.

Part of The Setai Wall Street, the 591-square-foot condo enjoys access to the building’s 44,000 square feet of high-end amenities, like full-service concierge, private spa, state of the art fitness center and the rooftop lounge, complete with outdoor lounge space and a catering kitchen. The location is also very convenient for mass transit, with the closest station serving the J and Z lines just steps away.

Disclaimer: As with any auction, we recommend performing thorough due diligence and running your own comps to find out how much the property is worth. Information provided in this article is not and should not be regarded as investment advice.