Infamous Hotel Carter Set for Sheriff’s Auction After Chetrit Default

The infamous Hotel Carter in Times Square is headed to a sheriff’s auction on May 6 after Meyer and Joseph Chetrit defaulted on a $233M mortgage and faced city lawsuits.

By: AXL Media

Published: Mar 10, 2026, 6:54 AM EDT

Source: The Real Deal

A Decade of Decline Under the Chetrit Group

The Chetrit brothers, Meyer and Joseph, purchased the 120-year-old property for $192 million in 2015. Despite initial plans to transform the blighted asset into a modern hospitality staple, the project was plagued by delays and ultimately abandoned.

The Default: In early 2025, the brothers defaulted on a massive $233 million mortgage.

The Nuisance Lawsuit: In July 2025, the City of New York filed a civil lawsuit against the Chetrits, classifying the building as a public nuisance. The city cited 155 violations, including "out-of-plumb" structural elements leaning toward the street, hanging wires, and rotten plywood.

The Personal Guarantee: Lender Mack Real Estate Group pursued a $6.5 million personal guarantee from the brothers after they failed to service the mezzanine debt.

Criminal Charges and Legal Headwinds