Wells Fargo Bank National Association v. 366 Realty LLC et al

OCR transcription for search; preserved printed pages are authoritative

Case 1:17-cv-03570-KAM-JAM Document 169_ Filed 11/19/25 Page 1 of 8 PagelD #:
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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

WELLS FARGO BANK NATIONAL
ASSOCIATION AS TRUSTEE FOR THE
HOLDERS OF COMM 2014-UBS6 MORTGAGE
TRUST COMMERCIAL MORTGAGE PASS-
THROUGH CERTIFICATES, BY AND THROUGH
ITS SPECIAL SERVICER, LNR PARTNERS, LLC, ORDER APPOINTING A RENT

Plaintiff, RECEIVER

-against- 17-CV-3570 (KAM) (JAM)

366 REALTY LLC; JOSHUA MIZRAHI;
CRIMINAL COURT OF THE CITY OF NEW
YORK; NYC ENVIRONMENTAL CONTROL
BOARD; NEW YORK CITY DEPARTMENT OF
FINANCE; and KASSIN SABBAGH REALTY
LLC,

Defendants.

For the reasons set forth in the Court’s October 15, 2025 Memorandum and Order (Dkt. No.
162), and per the filings set forth at Dkt. Nos. 142-1, 167, and 168, the Court ORDERS, pursuant to
Fed. R. Civ. P. 66, that:

1. Sanjay Gandhi, Senior Managing Director of Besen Partners, located at 13 West

38th Street, New York, New York 10018. telephone number: (646) 472-8725, be and hereby is

appointed, with the usual powers and directions, receiver (the “Receiver”), for the benefit of
the Plaintiff, of all rents and profits, including use and occupancy payments (collectively, the
“Rents”), from the mortgaged property described in the Second Amended Complaint and
commonly known as 366 Knickerbocker Avenue, Brooklyn, New York 11237, and more
particularly bounded and described on Schedule A hereto (the “Property”);

2. Before entering upon his duties, the Receiver shall be sworn to fairly and faithfully

discharge the trust committed to him and shall execute and file with the Clerk of this Court his

AUTHENTICATED
U.S. GOVERNMENT
INFORMATION

GPO

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oath 	and 	an 	undertaking 	with 	sufficient 	sureties, 	in 	the 	penal 	sum 	of
Five Thousand Dollars and Zero Cents ($5,000.00), conditioned for the faithful discharge of his
duties as Receiver;
3. 	The Receiver be and hereby is authorized to forthwith take charge and enter into
possession of the Property and is directed to manage the Property and to demand, collect and
receive from the tenant or tenants in possession of said Property, or other persons liable therefor,
all the Rents thereof now due and unpaid or hereafter to become due; and that said Receiver be
and hereby is authorized to institute and carry on all legal proceedings necessary for the protection
of said Property or to recover possession of the whole, or any part thereof, and to institute and
prosecute suits for the collection of Rents now due or hereafter to become due, and summary
proceedings for the removal of any tenant or tenants or other persons therefrom, to be brought
before the Civil Court of the City of New York, Kings County.
4. 	The Receiver shall forthwith deposit all monies received by him at the time he
receives the same in his own name, as the Receiver, and such account shall show the name of this
action in a segregated account in a bank insured by the FDIC using the federal tax identification
number of 366 Realty LLC and no withdrawals shall be made therefrom except as directed by the
Court or on a draft or check signed by the Receiver in accordance with the terms of this Order; and
the said depository shall send monthly statements of deposits in, and withdrawals from, the said
account to the said Receiver, who shall provide a copy to counsel for the Plaintiff and counsel for
Defendants 366 Realty LLC and Joshua Mizrahi;
5. 	The Receiver is authorized (i) to rent or lease for terms not exceeding one year any
part of the Property or such longer terms as may be approved by this Court; (ii) to keep the Property
insured against loss, damage by fire or public liability; (iii) to repair, pay taxes, including past due
taxes to the extent sufficient Rents are collected, municipal assessments and water rates and sewer
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charges due thereon; (iv) to pay all ordinary and necessary current costs of operating the Property;
and (v) otherwise to do all things necessary for the due care and proper management of the
Property;
6. 	Defendants 366 Realty LLC and Joshua Mizrahi and their members, managers,
agents, servants and employees, or any party in possession thereof, shall immediately turn over to
the Receiver all of the monies now on deposit with them as rent security, to be held by the Receiver
in a separate account in a bank insured by the FDIC, subject to such disposition thereof as shall be
provided in a further Order of the Court to be made and entered in the foreclosure action, unless
doing so would be inconsistent with the agreement between the landlord and tenant, in which case
the Receiver shall return the security deposit in accordance with such agreement;
7. 	Defendants 366 Realty LLC and Joshua Mizrahi and their members, managers,
agents, servants and employees, or any party in possession thereof, shall immediately turn over all
Rents of the Property and all of the monies now on deposit in any operating accounts to be held
by the Receiver in an account in a bank insured by the FDIC, to be used by the Receiver in
accordance with this Order;
8. 	Defendants 366 Realty LLC and Joshua Mizrahi shall, within ten (10) days of
service of this Order, deliver to the Receiver any and all papers and other things affecting the rental
or other operation of the Property or any part or parts thereof which they have in their possession
or which are in the possession of their members, managers, agents, servants or employees,
including but not limited to, the following:
(a) 	all keys, access cards, or codes to entrance doors, storage and boiler rooms, etc., of
the Property;
(b) 	all leases and amendments thereto in effect for the tenants and equipment at the
Property;
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(c) 	copies of all current rent rolls and tenancy lists relating to the Property;
(d) 	a reconciliation of all security deposits and accounts, and a list setting forth each
account number and the name of the depository wherein each account is maintained;
(e) 	copies of all current financial statements, including, but not limited to, all
documentation concerning delinquent tenants at the Property;
(f) 	all documents containing references to all utility accounts including, but not limited
to, electricity, gas, heat, water and telephone service;
(g) 	the names and account numbers of all utility companies servicing the Property;
(h) 	copies of all insurance policies in effect for the Property and any part thereof;
(i) 	copies of all contracts relating in any way to the Property including, but not limited
to, contracts with vendors or other service personnel;
(j) 	a list of suppliers and copies of all contracts currently in force, including service
and vendor contracts;
(k) 	an employee roster and payroll information;
(l) 	a list of any proceedings in any Court regarding or relating to leases on the Property
and all pleadings in connection with same;
(m) 	copies of any Court stipulations for payment of rent or arrearages;
(n) 	an equipment and inventory list, if any;
(o) 	the taxpayer identification number for Defendants 366 Realty LLC;
(p) 	copies of all Real Property Income and Expense Reports filed by the Borrower and
copies of any tax grievances, if any;
(q) 	copies of all violations against the Property or the Borrower, if any; and
(r) 	such other items, records or documents that the Receiver may reasonably require to
lease, manage and maintain the Property;
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9. 	The Receiver may hereafter request the production of additional documents and
information related to the Property, and 366 Realty LLC shall have five (5) business days to
comply with such request or advise the Court of any objection to such request, in which case the
obligation to comply with such request shall be subject to further Order of this Court;
10. 	Defendants 366 Realty LLC and Joshua Mizrahi shall, within ten (10) days of
service of this Order, advise the Receiver of any pending real estate tax appeals involving the
Property, and the Receiver shall be entitled to intervene in such proceedings in place of Defendant
366 Realty LLC;
11. 	Upon the issuance of Notices to Attorn by the Receiver, the tenants or other persons
in possession of said Property shall attorn to said Receiver and pay over to said Receiver all Rents
of such Property now due and unpaid, or that may hereafter become due; and that Defendants 366
Realty LLC and Joshua Mizrahi and their members, managers, agents, servants and employees, or
any other related party, be enjoined and restrained from collecting the Rents of said Property and
from interfering in any manner with the Property or its possession by the Receiver; and that all
tenants of the Property and other persons liable for the Rents be and hereby are enjoined and
restrained from paying any Rent for such Property to Defendants 366 Realty LLC, Joshua Mizrahi
or their members, managers, agents, servants and employees, or any person or entity other than the
Receiver;
12. 	All persons now or hereafter in possession of the Property, or any part thereof, and
not holding such possession under valid and existing leases or tenancies, do forthwith surrender
possession to the Receiver, subject to any applicable emergency rent laws, if any;
13. 	The Receiver, after paying the current expenses of the management and care of the
Property, and establishing such reserves as he may deem reasonably necessary for the maintenance
and care of the Property, upon Plaintiff’s written request, shall remit the balance of the Rents to
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the Plaintiff on a monthly basis, which shall be applied by the Plaintiff to the balance due under
the loan in any manner and in any order determined by the Plaintiff, in the Plaintiff’s discretion;
14. 	The Receiver be and hereby is authorized to make any reasonable and necessary
ordinary repairs and maintenance to the Property, provided that any non-emergency repair or
maintenance expense anticipated to be in excess of $10,000 shall be subject to prior Order of this
Court;
15. 	The Receiver shall not incur any expense, fees, charges, or costs in excess of the
Rents collected without prior Order of this Court;
16. 	The Receiver shall prepare monthly reports, which reports shall include an
accounting of income and expenses, itemization of fees and disbursements, a calculation of any
surplus rents, the most recent statement for the Bank Account, and a description of any leasing
changes or property management issues, and shall provide said reports to counsel for the Plaintiff
and counsel for Defendants 366 Realty LLC and Joshua Mizrahi by the 20 th day of each month;
17. 	366 Realty LLC, Joshua Mizrahi, and their members, managers, agents, servants
and employees, or any other related party are hereby ordered to cooperate in all respects with the
Receiver in order to enable the Receiver to collect the Rents and otherwise perform the Receiver’s
duties and obligations under this Order;
18. 	The Receiver, or any party hereto, may at any time, on proper notice to all parties
who may appear in this action, apply to this Court for further or other instructions or powers
necessary to enable the Receiver to properly fulfill his duties;
19. 	The Receiver shall continue as Receiver until further Order of this Court;
20. 	The Receiver shall be permitted to appoint an attorney, appraiser, auctioneer,
accountant or other agent upon Order of this Court after having moved in a separate application;
21. 	The Receiver shall register with any municipal departments as provided by
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applicable law;
22. 	The Receiver shall give a priority to the expenditure of rents and income and profits
to the correction of immediately hazardous conditions and violations of housing maintenance laws
within the time set by orders of any municipal department, or, if not practicable, seek a
postponement of time for compliance;
23. 	By accepting the receivership appointment and entering upon the duties of the
receivership, the Receiver certifies that, as of the date this order is executed he is, (1) qualified to
serve as receiver pursuant to the applicable laws; (2) capable of serving as the Court appointed
Receiver; and that if at any time during the receivership, he is no longer qualified or capable of
serving as the Court-appointed Receiver, he will promptly notify the Court;
24. 	By accepting the appointment, the Receiver additionally certifies that he shall obey
the Court’s orders, is familiar and experienced with the duties and responsibilities of a Receiver
and is fully capable and prepared to assume and meet those duties and responsibilities;
25. 	The Court may issue sanctions against any party that fails to adhere to Court orders,
including the Receiver; and
26. 	The Clerk of the Court is directed to administratively close this matter subject to
re-opening consistent with the above.
Dated: 	Brooklyn, New York
November 19, 2025 	SO ORDERED.
/s/ Joseph A. Marutollo
JOSEPH A. MARUTOLLO
United States Magistrate Judge
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Case 1:17-cv-03570-KAM-JAM
Document 169
Filed 11/19/25
Page 8 of 8 PageID #:
SCHEDULE A
[LEGAL DESCRIPTION]
ALL that certain plot piece or parcel of land, situate, lying and being in the Borough of Brooklyn, County of Kings, City and State of New York, bounded and described as follows:
BEGINNING at a point on the southwesterly side of Knickerbockers Avenue, distant 125 feet northwesterly from the corner for med by the intersection of the southwesterly side of Knickerbocker Avenue with the northwesterly side of Stanhope Street;
RUNNING THENCE northwesterly along Knickerbocker Avenue, 25 foet; THENCE southwesterly and parallel with Starihope Street, 100 feet;
THENCE southeasterlý parallel with Knickerbocker Avenue, 25 feet; THENCE northeasterly parallel, with Stanhope Street and part of the distance through a party wall, 100 feet to the point or place of BEGINNING.
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