Prana Investments‘ bet on rent-stabilized properties in New York City is turning into a disaster.
The San Francisco-based firm faces at least 14 foreclosure lawsuits against its 550-unit multifamily portfolio in the Bronx and Upper Manhattan. Three lenders filed lawsuits in New York State courts in the past four months, alleging that Prana’s entities owe over $56.6 million in unpaid loans and interest.
Peapack Private Bank and Trust initiated the most recent foreclosure actions against Prana. The lender alleged in four lawsuits filed in June that Prana defaulted on loans tied to four multifamily properties in the Bronx: 3021 Holland Avenue, 1694-1698 Selwyn Avenue, 4188 Barnes Avenue, and 689 East 187th Street.
Prana began defaulting on its monthly debt payments around March 2026, according to the lawsuits, and Peapack claims Prana owes over $15.5 million in outstanding loans. The lender further alleges that a Prana entity defaulted on its guarantee, which Peapack claims was an unconditional guarantee.
Peapack’s lawsuits come months after ConnectOne Bank brought seven pre-foreclosure lawsuits against the landlord, alleging it owed $37.4 million, according to PincusCo.
ConnectOne’s lawsuit detailed allegations similar to those in Peapack’s lawsuits, adding a claim that the landlord grossly mismanaged its properties.
In one lawsuit, ConnectOne alleges three Prana properties in the Bronx had amassed 302 violations with the Department of Housing Preservation & Development. At another Prana property, 2609 Bainbridge Ave, the HPD issued an Immediate Emergency Declaration, citing “sustained extensive fire, smoke, and water damage throughout.”
Prana purchased all but one of its buildings subject to foreclosure prior to the Housing Stability and Tenant Protection Act in 2019. In total, the firm, through various LLCs, paid about $83 million, according to property records.
The Housing Stability and Tenant Protection Act eliminated opportunities for landlords to raise rents on rent-stabilized units through renovations. The Federal Reserve’s move to hike interest rates in 2022 only compounded problems for landlords as did the city’s rent guidelines board vote last month to freeze the rent on rent-stabilized units.
As a result, values on rent-stabilized buildings have plunged and banks have backed away from the asset class. Flagstar Bank, once known as New York Community Bank and one of the largest lenders to the asset class, provided just $58 million of new loans to rent-stabilized buildings in 2025, according to analysis by Bisnow.
The firm, which focuses on acquiring rent-regulated apartments in Los Angeles and New York City, owns 3,692 residential units in the Big Apple with about three-quarters of its properties located in the Bronx, according to PincusCo. It has acquired over $2 billion worth of properties in more than 30 years of operation, according to its website.
Prana said in a statement to The Real Deal that it is “actively negotiating with its lending partners to find a path forward.”
“Most of our partners understand the difficulty of the moment and are working with us toward responsible solutions,” the firm said in the statement.
Peapack declined to comment. Flagstar and ConnectOne did not return a request to comment.
Read more
Brace for impact: Flagstar puts a number on rent freeze costs
Prana buys five-building Bronx portfolio for $36M
Who’s still buying rent-stabilized buildings?
