Abro Management signs $20.9M refi for 90-unit rental in Lenox Hill

Abro Management through the entity 77 Realty Owner LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $20.9 million for the 90-unit residential elevator building (D7) at 1453 York Avenue in Lenox Hill, Manhattan.
The deal closed on April 4, 2023 and was recorded on April 13, 2023. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $24.5 million. The property has 79,936 square feet of built space and 103,381 square feet of additional air rights for a total buildable of 183,300 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $261 and the price per buildable square foot is $113 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 signatory for Abro Management was Richard Scharf. The signatory for JPMorgan Chase was Jennifer Smith.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Martin Scharf, head officer and Richard Scharf, officer. The business entity is 77 Realty Llc. The 79,936-square-foot property generated revenue of $3.2 million or $40 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 90 residential units in Lenox Hill has 79,936 square feet of built space and 103,381 square feet of additional air rights for a total buildable of 183,300 square feet according to a PincusCo analysis of city data. The parcel has frontage of 140 feet and is 144 feet deep with a total lot size of 18,330 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $17 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $6,250 in ECB penalties and $6,350 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 15 of the 31 commercial properties representing 219,880 square feet of the 407,449 square feet. The largest owner is Vincent Campione, followed by Viking Management and then Urban Spring Capital.
There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 407,449 square feet of built space are walkup buildings, with elevator buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Abro Management owned at least 47 commercial properties with 2,648 residential units in New York City with 2,578,787 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $130 million in debt, with top three lenders as New York Community Bank, Morgan Stanley, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 94 percent of the 2,578,787 square feet of built space are elevator properties, with walkup properties next occupying 5 percent of the space. The bulk, or 65 percent of the built space, is in Manhattan, with Queens next at 18 percent of the space.

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