$12M note secured by Albert Malekan’s SoHo office building sold

The entity NYC Amsterdam Cap, LLC in care of the law firm Deutsch & Schneider, bought a note with an original principal of $12 million from M&T Bank secured by Albert Malekan’s office building (O5) at 75 Greene Street in SoHo, Manhattan.
The deal closed on August 12, 2024 and was recorded on September 12, 2024. The prior lender was M&T Bank which held debt that had an original loan amount of $12 million.The property has 11,223 square feet of built space and 22 square feet of additional air rights for a total buildable of 11,250 square feet according to a PincusCo analysis of city data.
The owner bought the property on August 29, 2008, for $9 million. The signatory for Albert Malekan was Albert Malekan. In April 2023 the loans were extended to April 1 2024.
This property was one of three building that were the subject of a ownership dispute, in which Michael Malekan sued Albert Malekan.

The property

The office building in SoHo has 11,223 square feet of built space and 22 square feet of additional air rights for a total buildable of 11,250 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 90 feet deep with a total lot size of 2,250 square feet. The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $8.4 million. The most recent loan totaled $12 million and was provided by M&T Bank on October 18, 2023.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $13 million money judgment concerning a partnership filed on May 24, 2023, by Michael Malekan against Albert Malekan. In addition, according to city public data, the property has received $350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 10, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 2 times the average sales volume among other neighborhoods with $533.5 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 214,448 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 16 commercial properties representing 256,299 square feet of the 328,194 square feet. The largest owner is Jsre Acquisitions, followed by Kub Capital and then Jeff Greene.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 328,194 square feet of built space are office buildings, with elevator buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Albert Malekan owned at least four commercial properties in New York City with 106,285 square feet and a city-determined market value of $46.8 million. (Market value is typically about 50% of actual value.) The portfolio has $114.5 million in debt, with top three lenders as SKW Funding, Citibank, and M&T Bank respectively. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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