Landesbank Hessen-Thüringen Girozentrale v. 29 West 34 Owner LLC (Herald Square Foreclosure Settlement)
German lender Helaba (Landesbank Hessen-Thüringen Girozentrale) exited its foreclosure lawsuit against Jeff Sutton's 29 West 34 Owner LLC after assigning its $50 million mortgage on the Herald Square retail property to a new lender entity tied to an SL Green executive. On August 5, 2026, the parties signed a stipulation discharging the court-appointed receiver and returning control of the building to Sutton, pending sign-off from Justice Francis A. Kahn III.
Why it matters
Shows lenders increasingly exiting contested CRE foreclosures by selling the distressed debt to specialized buyers rather than litigating to a forced sale, particularly where the collateral remains a desirable, occupied asset in a strong retail corridor. Illustrates that an aggressive borrower defense can extend a foreclosure timeline long enough for a debt sale or negotiated settlement to become the more attractive exit for a lender than a contested auction.
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