East Village landlord tied to Milano's dive bar faces foreclosure

Key facts

Owner

Moshe Khoshkheraman

Neighborhood

East Village, Manhattan

Building in foreclosure

An apartment building on First Avenue

Loan amount

$7 million

Allegation

Default on the loan

Related property

Khoshkheraman also owns the building that houses the Milano's bar. That building is not the one tied to the loan.

Reported by

Crain's New York

Date reported

October 20, 2026

What it means

The highlights

1. Owner Moshe Khoshkheraman is accused of defaulting on a $7 million loan.
2. The loan covers a First Avenue apartment building, not the Milano's building.
3. Khoshkheraman owns the building that houses Milano's, a known dive bar.

Why it matters Landlords

Foreclosure on a rental building can bring a new owner or manager, so tenants and voucher holders there should watch for changes.

Not known yet

• The exact address of the First Avenue building and how many units it has
• Who the lender is and when the default allegedly happened
• Whether the building has rent-stabilized units or voucher tenants
• Whether Khoshkheraman disputes the claim or plans to settle

Background

In New York, foreclosures generally go through the courts and can take a long time to resolve. While a case is pending, the owner usually stays responsible for running the building, and city housing code rules, including HPD repair and heat requirements, still apply. Under state law, tenants in a foreclosed residential building generally keep important protections, and rent-stabilized tenants keep their stabilized status after a change in ownership.