Overview
NOTIFICATION OF DISPOSITION OF COLLATERAL
Notice is hereby given that SB PB Victory, L.P. (“Secured Party”) will sell to the highest qualified bidder at a public sale in accordance with the provisions of the Uniform Commercial Code as in effect in the States of Texas and New Jersey (the “Sale”) all of the right, title and interest of Tonnelle North Bergen LLC, a New Jersey limited liability company (“Debtor”), in and to (i) that certain Mortgage Note dated June 4, 2019 in the original principal amount of $2,200,000.00 made by United Candy & Tobacco Co., Inc., a New Jersey corporation (“United Candy”), payable to Debtor, as evidenced by an Affidavit of Lost Note; (ii) that certain Mortgage and Security Agreement dated June 4, 2019 made by United Candy in favor of Debtor and recorded in the Hudson County Register’s Office on September 19, 2019 in Book 19461, Page 1075; (iii) that certain Agreement of Sale dated June 4, 2019 between United Candy, as seller, and Debtor, as buyer; and (iv) all certificates, instruments and other documents evidencing any of the foregoing, together with all interest, earnings and other proceeds thereof (collectively, the “Collateral”). The Collateral is the subject of the Collateral Assignment of Loan Documents, Collateral Assignment of Rights Under Purchase Agreement and Collateral Assignment of Mortgage, each dated as of August 30, 2019, made by Debtor in favor of Secured Party in connection with the Construction Loan Agreement dated as of August 30, 2019 between Secured Party and Debtor, under which Debtor is in default. Secured Party’s understanding is that the Collateral relates to the premises known as 7408-7416 Tonnelle Avenue, North Bergen, NJ (Block 254, Lot 71) (the “Property”), the fee interest in which is owned by United Candy subject to a 99-year ground lease. The leasehold estate is not part of the Collateral.
AUCTION DETAILS
Parties interested in qualifying to submit bids to purchase the Collateral, and to participate in the Sale, must be prequalified for such participation by the Broker, which includes the execution of a confidentiality agreement and a refundable deposit of $100,000 minimum or 10% of the initial bid via bank check, whichever is greater, as a pre-condition of registration. Interested parties must contact David Schechtman to receive the Terms and Conditions of Sale and bidding instructions by November 12, 2026 by 3:00 PM.
The Sale will take place beginning on November 17, 2026 at 10:00 AM at the offices of Secured Party’s counsel, Ashurst Perkins Coie US LLP, 1155 Avenue of the Americas, 22nd Floor, New York, NY 10036, together with such auction website as will be provided prior to the Sale Date.
Telephone: (212) 468-5907 Email: dschechtman@meridiancapital.com
SALE DOCUMENTS
Download the Notice of Secured Party Sale, Terms and Conditions of Sale, Memo of Sale and Sale Summary.
https://platform.reverecre.com/api/deal/5f9c687a-17c8-42ec-b46b-9d6f824be181/archive.zip?path=Sale+Documents
The Collateral is being sold on an “as is, where is” basis. There is no warranty relating to title, possession, quiet enjoyment or the like in this Sale. In addition, the Sale of the Collateral is subject to all liens, security interests, claims, liabilities, charges and encumbrances of any kind owing by or with respect to the Collateral. Secured Party reserves the right to credit bid at the Sale up to the amount of the Obligations plus charges, costs and expenses recoverable from sale proceeds, to adjourn the Sale one or more times, and to amend the Terms and Conditions at any time prior to the acceptance of bids. Any person or entity entitled to redeem the Collateral may do so by paying the full amount of the Obligations secured by the Collateral (including the expenses of preparing for and conducting the Sale) prior to the Sale. Secured Party remains entitled to exercise all of its rights and remedies under the Transaction Documents, at law or in equity, against Debtor and any other persons or entities that may be liable on account of the Obligations, and neither the conduct of the Sale nor the delivery of the Collateral to the buyer shall derogate from any right, privilege or power granted to Secured Party under any of the Transaction Documents.
All property level data presented herein is based upon information and belief and may not be completely accurate.
Investment Highlights
INVESTMENT HIGHLIGHTS
•$2,200,000 Mortgage Note made by United Candy & Tobacco Co., Inc., bearing interest at 1% per annum ($1,833.33 per month, interest only) with the entire principal balance due at maturity on June 1, 2029; prepayment of principal is prohibited and constitutes an Event of Default. The Note is secured by a first-lien Mortgage and Security Agreement encumbering the Property, which secures the Mortgagor’s obligations under the Note, the Ground Lease and the Agreement of Sale.
•Agreement of Sale granting the holder the right to acquire the fee interest in the Property for $2,200,001, with the full $2,200,000 Note balance credited against the purchase price at closing, on August 30, 2029 or any earlier date at the holder’s sole discretion; the deed is to be held in escrow pending closing. Under AOS §2.D, an additional $400,000 may be payable to Seller if the holder elects to accelerate Closing; bidders should review §2.D.
•The Property is a 0.23-acre (±10,054 SF) parcel with ±100 feet of frontage on Tonnelle Avenue (US Routes 1 & 9), located approximately 100 feet north of 74th Street within the ±1.32-acre Wawa site (merged Lot 66.02) redeveloped in 2022 as a Wawa convenience store and fuel station; the Wawa fuel canopy and pump area sit on the Property, which is subleased to Wawa, Inc.
•The fee is subject to a 99-year triple-net ground lease (2019), originally to Tonnelle North Bergen LLC; the leasehold estate is currently held by SB PB Tonnelle, L.L.C., an affiliate of the Secured Party, following foreclosure, and is not part of the Collateral. Ground rent is $22,000 per year for Lease Years 1–10 ($1,833.33 per month, equal to the Note interest); for Lease Years 11–99, beginning on or about May 1, 2029, rent is $1.00 per year if the fee owner is unable or unwilling to convey pursuant to the Agreement of Sale, and the lease does not state a rent for Years 11–99 if the fee is conveyed.
•North Bergen sits directly across the Hudson River from Manhattan, approximately three miles from the Lincoln Tunnel with direct access to I-95 (New Jersey Turnpike) and Route 495; Tonnelle Avenue is a major highway-commercial corridor with a Chick-fil-A on the adjoining lot and a Target- and Lowe’s-anchored center across the avenue.
Collateral Summary
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