Upper East Side Penthouse Faces November 17 Foreclosure Auction
The Marquand triplex owned by developer Ziel Feldman is set to be sold at auction after a dispute with Bank of America over unpaid mortgage and tax debt.
Updated on Nov. 7, 2026 in Residential
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A foreclosure auction for Ziel Feldman's triplex penthouse at the Marquand on the Upper East Side is scheduled for November 17. Bank of America alleges Feldman defaulted on a $19.2 million mortgage dating to 2018, and a judge ruled in August that the Feldmans owed $23.2 million plus fees.
Why it matters
The case shows how a high-value condo unit can be pulled into foreclosure when mortgage and tax payments stop, even for a luxury property. For New York City buyers and owners, it highlights the risks of carrying large mortgage and property tax debt on prime residential real estate.
The triplex spans 6,200 square feet and is listed at $4,435 per square foot, with about 2,600 square feet of outdoor space. The Feldmans' alleged property tax debt reached $539,000 by September 2023, and it is unclear whether the current listing will close before the auction.
The players
Ziel Feldman
Ziel Feldman is a New York real estate developer whose firm HFZ Capital developed luxury condominiums in Manhattan, including the Marquand conversion and The XI in West Chelsea.
Bank of America
Bank of America is one of the largest banks in the United States, and it is the lender that sued the Feldmans to force the sale of the penthouse.
The details
Bank of America sued Feldman and his wife in October 2023 to force a sale after they allegedly paused principal-and-interest payments starting June 2022 and stopped paying monthly property taxes beginning January 2021. The couple listed the triplex for $27.5 million two weeks ago, after Feldman previously listed it in 2020 for $39 million without a sale.
Timeline
2018: A corporate entity tied to Feldman took ownership of the penthouse, and the mortgage dates from this year.
January 2021: The Feldmans allegedly stopped paying monthly property taxes.
June 2022: The Feldmans allegedly paused principal-and-interest payments.
October 2023: Bank of America sued to force a sale.
November 17, 2026: The foreclosure auction is scheduled.
Market Landscape
HFZ Capital's 2013 conversion of the Marquand into 40 condominiums marked an earlier phase of luxury development in Manhattan. The current foreclosure of a unit in that building shows how the high-end condo market has tightened as ultra-luxury listings sit unsold for years.
Owners of luxury condos carrying large mortgages and property tax balances face the risk of foreclosure if payments lapse, even in prime Manhattan buildings. Buyers in this market should verify building and unit financing before purchasing a resale unit.
The takeaway
Carrying a large mortgage and property tax burden on a high-value condo can put even prestigious properties at risk when payments stop. Owners should keep current on both obligations and address disputes with lenders early.
What happens next
The foreclosure auction of the Marquand penthouse is scheduled for November 17, 2026.
Further reading
For more on the local housing market, explore Residential coverage for New York City.
Source note: This article includes information reported by The Real Deal New York.
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