Good luck to any lender seeking to foreclose on AB Capstone’s Meir Babaev.
A judge denied a third foreclosure attempt on Babaev’s medical office property in Queens’ Bellerose Manor neighborhood.
The judge put the kibosh on the latest attempt by lender Broadfield Realty Capital to foreclose on the 90,000-square-foot property at 251-77 Jericho Turnpike. The judge said the lender is seeking to get a “second bite at the apple.”
The court also shut down the lender’s attempt to appoint a receiver.
The judge’s order means the case against Babaev and his affiliated entities will likely have to go to trial unless a settlement can be reached. The length and time of going to trial could prove costly for the lender.
Judge Maurice Muir said a “party seeking summary judgment should anticipate having to lay bare its proof and should not expect that it’ll readily be granted a second or third chance.”
“The ruling reinforces that lenders must meet basic legal standards before attempting to seize property,” said Leo Jacobs of Jacobs PC, who represented Babaev. “We’re proud to continue protecting our client’s rights and look forward to a full dismissal of the case in the near future.”
Jacobs said the lender claims the loan balance now exceeds $40 million with interest.
The saga dates back to 2021. Then, original lender Jovia Financial alleged that Meir Babaev, Albert Babaev and Daniel Babaev and their affiliated entities had defaulted on a $23.5 million loan secured by the property at 251-73/77 Jericho Turnpike.
A year later, Jovia assigned the loan to real estate private equity firm Turret Equities. In 2023, the judge struck down Turret’s motion for summary judgment to foreclose on the property and take it over. The court also denied Turret’s request to appoint a receiver.
The loan was eventually assigned to the aggressive lender Madison Realty Capital in 2023, according to property records. The foreclosure against the property remained pending. And in 2025, Madison sold the loan to Broadfield Realty. Shortly thereafter, the judge denied another motion to appoint a receiver and to allow Broadfield to foreclose on the property.
An attorney for the lender did not return a request to comment.