Jordache Founder Seeks Personal Out in 633 Third Ave Fight

9 minutes read

Joe Nakash is forever in blue jeans, but doesn’t want to be forever in a foreclosure fight.

Counsel for the Jordache manufacturing founder filed a motion to dismiss Nakash’s personal liability in a lawsuit at 633 Third Avenue in Midtown Manhattan. Nakash’s lawyers claim the labels being used to drag the mogul into the battle personally don’t fit.

Nakash’s lawyers, Terrence Oved and Darren Oved of Oved & Oved LLP, argue that a guaranty tied to Nakash is only applicable if he trips a list of “bad-boy” acts. They further claim a mechanic’s lien in question applies to the building as a whole and an allegation about diverted rent payments ignores the use of a “hard lockbox” account.

Oved & Oved 's Darren Oved — Oved & Oved ‘s Darren Oved (Oved & Oved)

The “lender’s own records undercut its attempt to hold our client personally liable,” Nakash’s lawyers told The Real Deal. “We have asked the court to dismiss [the] lender’s baseless claims and hold it accountable for filing them.”

Lawyers for the plaintiff, Wilmington Trust — acting as a trustee for Wells Fargo — did not immediately respond to a request for comment.

Wells Fargo started pursuing a foreclosure case for eight retail units at the property over the summer, alleging Nakash and the limited liability company that owns the building defaulted on a $32 million loan backed by the units.

The 2016-originated mortgage allegedly matured a month earlier, according to the lawsuit filed in New York State Supreme Court. Wilmington Trust, which is overseeing the mortgage after it sold to investors, demanded payment from Nakash days after maturity, but allegedly wasn’t paid.

Oved & Oved's Terrence — Oved & Oved’s Terrence Oved (Oved & Oved)

The eight units span more than 40,000 square feet of retail space, occupying the ground floor and concourse of the 41-story, 1-million-square-foot property. Tenants of the space include Chase Bank, New York Sports Clubs and Docks Oyster Bar.

Nakash purchased the units from SL Green in 2001 for $13.3 million, utilizing a fortune made through the denim business into real estate. Other units at the property, many of which are leased or owned by entities associated with the United Nations, don’t appear to be impacted by the legal proceedings.