The lender behind the Monarch 716 student-housing complex on Buffalo's West Side has started foreclosure proceedings against developer DHD Ventures of Rochester, seeking to seize the troubled property and even go after DHD's two principals personally.
Acres Capital, which acts as an agent and adviser for three insurance companies, filed the first foreclosure paperwork Tuesday in State Supreme Court in Erie County, claiming it is owed more than $38 million and demanding payment.
The Westbury, N.Y.-based company lists two mortgages from July 8, 2016, including a building loan for $28.44 million and an additional project loan of $7.93 million. The higher total balance stems from additional interest owed on the loans.
The court documents list as defendants Buffalo State Ventures - the DHD entity that owns the property at 100 Forest Ave. - as well as partners Thomas Masaschi of Rochester and Jason Teller of North Carolina. It also cites various other contractors and vendors that have filed their own liens against DHD for failing to fully pay them for their work.