Chen Family Wins Legal Battle Over Garment District Condo

A stalled Garment District condo project just got a major legal twist: a New York judge ruled that a deed-in-lieu agreement the bank tried to use to seize the property is actually a mortgage — forcing the bank’s new owner, Empire Capital Holdings, to go through the lengthy foreclosure process instead. This keeps the Chen family’s twelve-story building in their hands for now, even as they battle a separate $3 billion fraud lawsuit. The ruling is a big win for the Chens, who defaulted on a $60M loan and even filed bankruptcy to keep the project alive — but the legal fight is far from over. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/a7ef3471b769deb7