Abraham Talassazan signs $24M refi loan with Washington Capital for office in Flatiron District

Abraham Talassazan through the entity 777-26 LLC as borrower signed a refi loan with lender Washington Capital Management through the entity Mif Ny Lender LLC valued at $24 million for the office building (O6) at 155 Fifth Avenue in Flatiron District, Manhattan.
The deal closed on December 20, 2022 and was recorded on December 30, 2022. The prior lenders were bondholders of a securitized loan through Series 2013-C5 which held debt that had an original loan amount of $29.2 million. The property has 37,288 square feet of built space and 10,952 square feet of additional air rights for a total buildable of 48,250 square feet according to PincusCo analysis of city data. The loan price per built square foot is $643 and the price per buildable square foot is $497 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on January 9, 2008, for $38 million. The signatory for Abraham Talassazan was Abraham Talassazan. Cory Carlson is CEO of Washington Capital Management.

The property

The 155 5th Avenue parcel has frontage of 59 feet and is 87 feet deep with a total lot size of 4,825 square feet. The lot is irregular. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $15.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $25 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Flatiron District, the majority, or 72 percent of the 23.7 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has the 10th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Flatiron District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 20th highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one 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 51 commercial properties representing 494,681 square feet of the 976,730 square feet. The largest owner is Zucker Organization, followed by Thor Equities and then Ruth Shomron.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 849,126 square feet of built space are office buildings, with elevator buildings next occupying 28 percent of the space.

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