HAP Investments has lost control of a small East Harlem rental portfolio after its lender acquired the properties at a judicial foreclosure auction. The three buildings include approximately 171 recently built apartments, primarily market-rate units with some affordable units. HAP’s website and phone number are no longer active. Tenants, neighbors, and investors are awaiting information on whether the lender will retain the properties or list them for sale.
Lender Takes Title After Foreclosure Auction
According to PincusCo, Ladder Capital, using an affiliate called Lehny LLC, picked up title to the three East Harlem buildings by submitting credit bids at a judicial foreclosure sale. The auction covered 2211 Third Avenue, 329 Pleasant Avenue and 2338 Second Avenue, part of HAP’s broader push in the neighborhood. PincusCo reports that Ladder’s expected play is to hold the assets for sale.
Loan Documents Show 2021 Mortgage
Court records available on Justia show that the mortgage at the center of the case is dated December 6, 2021, and reflects an original principal balance of $63,600,000. The filings state that entities tied to HAP executed the loan documents and that Eran Polack and related companies signed recourse guarantees connected to the debt. The same docket, under index number 850117/2024, later became the vehicle for Ladder’s foreclosure action in 2024.
Auction Dates And Title Records
PincusCo notes that the court-appointed referee set January 21, 2026, as the sale date, and that the transfer closed that day, with the deed recorded on February 4, 2026. The notice of sale and accompanying court papers identify referee Jeffrey R. Miller and show Mark Ableman signing on behalf of the Ladder affiliate. Public-record links cited by PincusCo document that the deal moved through New York City’s standard recording channels.
Wider Troubles For HAP
The East Harlem foreclosure is only the latest headache for HAP. The firm’s stalled HAP Seven development at 4452 Broadway was transferred to Madison Realty Capital in 2024, a collapse that left hundreds of Israeli investors facing collective losses estimated at about $70 million. Coverage of the investor fallout and related bankruptcy proceedings around that project appeared in both overseas outlets and local reporting, according to Ynetnews. That earlier wipeout left many of HAP’s backers on edge as the East Harlem assets wound their way through court.
HAP Appears To Have Scaled Back
The company’s public footprint has largely faded. HAP’s corporate website is currently offline, and a business phone number linked to the firm has reportedly been disconnected, as first noted by The Real Deal. That outlet also reported that Eran Polack now identifies himself as CEO of HAP Construction on LinkedIn. The HAP Construction company page on LinkedIn lists Polack among its leaders, suggesting the focus has shifted toward construction services rather than the investment platform that powered HAP’s earlier buying spree.
Legal Exposure For Founders
Court papers tied to the foreclosure spell out why the lender pressed for a sale and identify Polack and affiliated entities as guarantors on the loan. As summarized in the state court filings posted on Justia, the mortgage and loan agreement include recourse guarantees that leave Eran and Idit Polack exposed to potential claims if Ladder pursues deficiency relief. For now, title sits with the Ladder affiliate, and what comes next, from hands-on property management to a resale, will be guided by follow-up court filings and the referee’s report.
