A&E Real Estate signs $138M refi loan with MF1 Capital for 266-unit UWS rental

A&E Real Estate Holdings through the entity UWS Ventures IV, LLC as borrower signed a refi loan with lender MF1 Capital valued at $138 million for the 266-unit residential elevator building (D7) at 575 Amsterdam Avenue in Upper West Side, Manhattan.
The deal closed on July 15, 2022 and was recorded on August 2, 2022. The prior lender was KKR & Co. which held debt that had an original loan amount of $138 million. The property has 324,992 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $424 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 A&E Real Estate Holdings was Darryl Smith. The signatory for MF1 Capital was Jonathan Pfeil.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Maggie Mccormick, head officer and Brian Garland, agent. The business entity is Uws Ventures Iv, Llc. The 324,992-square-foot property generated revenue of $13.1 million or $40 per square foot, according to the most recent income and expense figures.

The property

The 575 Amsterdam Avenue parcel has frontage of 201 feet and is 234 feet deep with a total lot size of 45,219 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $63.7 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 four DOB violations, $57,500 in ECB penalties, three housing violations, and $58,200 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 block

On this tax block, PincusCo has identified the owners of six of the 15 commercial properties representing 361,903 square feet of the 393,268 square feet. The largest owner is A&E Real Estate Holdings, followed by Hubb Nyc and then Jonathan Ostrow. There is one active new building construction project totaling 3,821 square feet. It is a one-unit, 3,821-square-foot R-3 building developed by Sonny Bazbaz with plans filed November 14, 2013 and it has not been permitted yet.

The majority, or 86 percent of the 379,797 square feet of built space are elevator buildings, with walkup buildings next occupying 12 percent of the space.

The borrower

The PincusCo database currently indicates that A&E Real Estate Holdings owned at least 161 commercial properties in New York City with 12,519,406 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as Signature Bank, JPMorgan Chase, and Deutsche Bank respectively. Within the portfolio, the bulk, or 72 percent of the 12,519,406 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. The bulk, or 57 percent of the built space, is in Queens, with Manhattan next at 31 percent of the space.

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