Credit Suisse CMBS Trust Forecloses on Bronx Multifamily for $2.6M

A Credit Suisse issued CMBS trust is foreclosing on a 26 unit walk up at 3044 Wallace Avenue in the Bronx, moving to sell the building at public auction on October 26 to collect a $2,621,361.84 judgment against its owner, 3044 Wallace Realty LLC.

Wilmington Trust, National Association, holds the case as trustee for Credit Suisse First Boston Mortgage Securities Corp.’s Multifamily Mortgage Pass Through Certificates, Series 2019 SB61, acting through special servicer KeyBank National Association. The judgment of foreclosure and sale was entered September 11, 2026, in Bronx County Supreme Court, Index No. 805921/2024E, and the first legal notice ran in the New York Law Journal on September 25.

Why it matters

This is a lender acting, not a market trend. The loan behind 3044 Wallace Avenue was originated and packaged into a commercial mortgage backed security in 2019, the kind of five to seven year multifamily paper now hitting its maturity wall across the outer boroughs at the same time refinancing costs have climbed. When a special servicer like KeyBank lets a defaulted loan run to a completed judgment rather than negotiate a workout, it signals the trust sees more value in taking the asset than in modifying the borrower’s terms. For an owner of a small Bronx multifamily building carrying 2019 vintage CMBS debt, the sequence here, default, judgment, referee’s sale, is the outcome a workout is meant to avoid.

City property records show the building is a 26 unit, Class C1 walk up registered with the city’s Housing Preservation and Development department under BIN 2055642, in Community Board 12. Whoever wins the referee’s sale takes over an occupied rent roll, not a vacant lot, which puts real tenants inside the transaction alongside the lender and the borrower.

The numbers

The judgment totals $2,621,361.84. The referee, E. Sergio Marquez, is set to auction the property on October 26, 2026, at 2:15 p.m. at Bronx County Supreme Court, Courtroom 711, 851 Grand Concourse. The defendant of record is 3044 Wallace Realty LLC. NYC PLUTO data confirms the same LLC as the current owner of a 26 unit, Class C1 building at the address, with HPD’s registration for BIN 2055642 active under that ownership.

What’s next

Absent a settlement, redemption, or adjournment before October 26, the referee’s sale proceeds and title passes to the winning bidder, which could be the trust itself if no outside buyer outbids the judgment amount. For developers and investors tracking Bronx multifamily distress, 3044 Wallace Realty LLC’s default is one data point in a broader question worth watching this cycle: how many other small multifamily buildings financed through 2019 vintage CMBS conduits are carrying loans their owners cannot refinance at today’s rates. Related coverage of New York deals and distress is tracked at the New York markets hub.