A New York judge on Tuesday gave the green light for foreclosure proceedings on a landmarked Fifth Avenue office building, putting a 1906 McKim, Mead & White standout on the brink of a debt-driven sale. The ruling lifts a court-ordered pause and could speed up a lender-led push toward a public sale or a takeover of the property, a prospect that has neighbors and preservation advocates on alert.
The decision centers on 390 Fifth Avenue, better known as the Gorham Building, and follows months of litigation between the building’s ownership, tied to the Schwalbe family and Hilson Management, and lender Maverick Real Estate Partners, as reported by Crain's New York Business. According to the outlet, the judge’s order removes a key procedural block that had kept a foreclosure from moving ahead.
In early February the court briefly ordered Maverick to halt any foreclosure efforts after the owners accused the lender of “vulturous” tactics during talks over a short-term extension, according to The Real Deal. That pause bought the owners some time, but the two sides have continued to spar over extension fees, cash sweeps and how rent from the building is collected.
Public records show the property was refinanced in spring 2025 and that the debt tied to the building sits in the low-to-mid $40 million range. A PincusCo review put a March 31, 2025 refinance at about $47.4 million, with the building’s rentable area at roughly 133,544 square feet. That short-term financing and tight loan maturity have helped push the dispute quickly into court, according to the public-record analysis from PincusCo.
What the ruling could mean
With the judge’s order in place, the lender can move toward a judicial sale or otherwise enforce its remedies, a path that may end in an auction where Maverick can bid using the debt it already holds. The owners, for their part, have demanded at least $50 million in damages over what they call predatory conduct, and that counterclaim could continue even as the foreclosure proceeds, according to Crain's New York Business.
Landmark protections complicate redevelopment
The Gorham Building was designated an individual New York City landmark in 1998, which means any exterior work requires approval from the Landmarks Preservation Commission, according to the commission’s designation materials. Preservation advocates have for years pointed to deferred façade repairs and urged a full restoration, a reality that could limit hard-charging redevelopment schemes and add costs for any buyer or lender that ends up in control, as reflected in testimony compiled by the Victorian Society in New York.
Next steps
Either side could seek emergency relief or file appeals, and if the foreclosure moves ahead, New York’s court timelines can stretch for months. That lag often gives lenders and owners room to negotiate settlements or alternative deals. Tenants, Midtown business groups and preservation organizations are expected to keep a close eye on filings at New York County Supreme Court and on any auction notices that might pin down a sale date, per prior reporting and court records cited by The Real Deal.
For now, the fate of the Gorham Building is tied to the court calendar and the parties’ next legal moves. We will continue tracking new filings and any sale scheduling as the litigation plays out.
