111 West 57th Investment LLC v. ACREFI Mortgage LLC (No-Consideration Fund Transfer Claim)

Lending & Foreclosure Filed
Date
October 19, 2026
Added to tracker
October 29, 2026
Court or forum
Supreme Court of the State of New York, New York County
State
New York
Amount / scale
unspecified — alleged no-consideration fund transfer from ACREFI to its parent
Parties
Plaintiff: 111 West 57th Investment LLCNominal Plaintiff: 111 West 57th Partners LLCNominal Plaintiff: 111 West 57th Mezz 1 LLCDefendant: ACREFI Mortgage LLCDefendant: Apollo Commercial Real Estate Finance, Inc.

AmBase's 111 West 57th Investment LLC accused Apollo's ACREFI Mortgage of transferring funds to its parent, ARI, for no consideration, escalating the Steinway Tower mezzanine fight in a new Manhattan Supreme Court suit.

AmBase Corporation disclosed that its 111 West 57th Investment LLC vehicle filed a Summons with Notice on October 19, 2026 in Supreme Court, New York County, against ACREFI Mortgage LLC and its indirect parent, Apollo Commercial Real Estate Finance, Inc., alleging ACREFI improperly transferred funds to ARI for no consideration or equivalent value. The suit is a new, separate action from the long-running 'Lender Action' over the 2017 strict foreclosure that wiped out the plaintiffs' equity in the Steinway Tower project at 111 West 57th Street.

Why it matters

The filing shows that AmBase's litigation campaign against Apollo-affiliated lenders over the Steinway Tower mezzanine loan continues to widen beyond the original foreclosure dispute into intercompany-transfer theories, following the New York Court of Appeals' May 2026 revival of the plaintiffs' good-faith claim. Mezzanine lenders should expect continued scrutiny of fund movements between special-purpose lending subsidiaries and their parents following a foreclosure that eliminates a junior equity holder's position.

Original source ↗
Read next
111 West 57th Investment LLC v. 111 W57 Mezz Investor LLC (Steinway Tower "Sole Discretion" Ruling) New York's highest court revived an AmBase vehicle's good-faith claim against Apollo-affiliated mezzanine lenders over a $25M Steinway Tower loan sale followed by a strict foreclosure of its equity. Lending & Foreclosure · May 28, 2026 Elizon DB Transfer Agent LLC v. Hungerford Building Owner (Rochester Mixed-Use Foreclosure Appeal) A foreclosure auction of Rochester's Hungerford Building set for October 29, 2026 was stayed after the owner appealed a referee's report putting the debt at $10,490,036.37 on an $8.25 million loan. Lending & Foreclosure · October 15, 2026 Quinlan Development Group v. Maple 1 Farley Owner LLC (Penn Plaza Life-Sciences Site Foreclosure) Quinlan, which bought the loan from Bank of China, sued to foreclose on a stalled Penn Station life-sciences site, saying the $54 million mortgage grew to $65.9 million, and named developer Cannon Hill as guarantor. Lending & Foreclosure · October 13, 2026
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On October 19, 2026, 111 West 57th Investment LLC, suing on its own behalf and derivatively for 111 West 57th Partners LLC and 111 West 57th Mezz 1 LLC, filed a Summons with Notice in the Supreme Court of the State of New York, New York County, against ACREFI Mortgage LLC and its indirect parent, Apollo Commercial Real Estate Finance, Inc. The filing, docketed under Index No. 655919/2026, alleges that ACREFI improperly transferred funds to Apollo Commercial Real Estate Finance for no consideration or equivalent value. The claim surfaced publicly through AmBase Corporation's quarterly report filed October 28, 2026; AmBase is the ultimate corporate parent of the plaintiff entities and has carried this litigation on its books since its equity investment in the underlying project was impaired in 2017.

Case timeline · 4 entries Latest: October 19, 2026 — Plaintiffs file a new Summons with Notice against ACREFI and ARI alleging a no-consideration fund transfer

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