Douglas Peterson’s City Skyline Realty is facing foreclosure on nine buildings in New York City, according to a report from Crain’s. The lawsuits, filed this week in Manhattan Supreme Court, allege that Peterson defaulted on loans tied to seven properties in Manhattan and two in the Bronx. The total debt in default is reported at $55.4 million.
Maurice Arlos is also named as a defendant in the lawsuits, though his role with the properties has not been clarified. Peterson declined to comment for the report.
The original loans were issued by Arbor Agency Lending and Greystone Servicing between 2018 and 2019, typically ranging from $5 million to $7.5 million per property. These loans were first assigned to Freddie Mac before being transferred to Wilmington Trust, which now acts as trustee for the debt. KeyBank National Association, serving as special servicer of the debt, filed the lawsuit.
The buildings at risk of foreclosure in Upper Manhattan are located at 517 West 161st Street, 446 West 164th Street, 1484 Amsterdam Avenue, 537 West 150th Street, 541 West 144th Street, 516 West 136th Street and 3694 Broadway. In the Bronx, affected addresses include 1075 Nelson Avenue and 2105 Ryer Avenue.
These nine buildings contain a total of 269 units; only two appear available on StreetEasy and both are currently under contract. Most of these properties were acquired between 2014 and 2017; some date back to acquisitions made in 2010.
Peterson has previously faced financial challenges with his real estate holdings. In 2023, he defaulted on loans linked to five rent-regulated buildings. Later that year he was subject to pre-foreclosure filings from Fannie Mae concerning eleven additional buildings in Upper Manhattan and the Bronx—though those properties do not overlap with those now facing foreclosure.
At that time last year, defaults across Peterson’s portfolio totaled $72 million out of an estimated $316 million value for City Skyline Realty’s holdings—meaning about one-third of its assets were distressed.
It remains unclear how many units involved in this latest round of foreclosures are rent-stabilized.
