"Atlanta-based U.S. Strategic Capital, a short-term lender to small businesses, filed a lawsuit this month to foreclose on two of Morton's East Hampton properties. The suit, filed in Suffolk County, claimed his development firm, Excelsior Development NY, defaulted on a $3.8 million loan from July. Morton personally guaranteed the loan, allowing USSC to pursue the developer's personal assets if a potential foreclosure sale doesn't cover his debts, which the suit places at more than $4 million."
"A foreclosure sale would also need to cover the senior loans on Morton's homes, according to the complaint. The developer took out a mortgage of over $5 million last March on the property at 38 Chatfields Ridge Road, which appears to be one of his personal residences. He also took out a mortgage with a principal amount of around $3.8 million in 2023 on the home at 126 Long Lane."
Jeremy Morton acquired East End restaurants and prime commercial properties, including Ruschmeyer's, Rick's Crabby Cowboy Cafe, and Morty's Oyster Stand, plus major 2024 purchases in Southampton and Sag Harbor. Lenders allege Morton stopped repaying debts related to redevelopment plans. Atlanta-based U.S. Strategic Capital sued to foreclose on two East Hampton properties after claiming Excelsior Development NY defaulted on a $3.8 million loan that Morton personally guaranteed, with the suit placing debts above $4 million. The complaint cites senior mortgages on Morton’s residences (over $5 million on 38 Chatfields Ridge Road and about $3.8 million on 126 Long Lane) and a separate complaint alleges roughly $200,000 in unpaid small-business loans. Morton stated he is addressing the matters and will work with stakeholders to resolve issues.
Read at therealdeal.com
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