A&E Real Estate signs $188.5M initial loan with Mesa West for 354-unit rental in Lincoln Square

A&E Real Estate Holdings through the entity 140 Riverside Boulevard, LLC as borrower signed a loan with lender Mesa West Capital through the entity Mesa West Real Estate Income Fund V, LLC valued at $188.5 million for the 354-unit residential elevator building (D8) at 140 Riverside Boulevard in Lincoln Square, Manhattan.
The deal closed on August 31, 2022 and was recorded on September 12, 2022. The property has 367,786 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $512 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 April 7, 2022, for $265.6 million. The signatory for A&E Real Estate Holdings was Darryl Smith.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development include Margaret McCormick, head officer and Brian Garland, agent. The business entity is 140 Riverside Boulevard Llc. The 367,786-square-foot property generated revenue of $16.7 million or $46 per square foot, according to the most recent income and expense figures.

The property

The 140 Riverside Boulevard parcel has frontage of 187 feet and is 167 feet deep with a total lot size of 30,462 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2005 and expires in 2025. The city-designated market value for the property in 2022 is $91.5 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 and $400 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of 17 of the 72 commercial properties representing 4,279,229 square feet of the 6,491,203 square feet. The largest owner is Equity Residential, followed by Brodsky Organization and then GID Real Estate Investments.

The majority, or 87 percent of the 4.4 million square feet of built space are elevator buildings, with office buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that A&E Real Estate Holdings owned at least 162 commercial properties in New York City with 13,043,872 square feet and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.1 billion in debt, with top three lenders as Signature Bank, JPMorgan Chase, and Square Mile Capital Management respectively. Within the portfolio, the bulk, or 73 percent of the 13,043,872 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 54 percent of the built space, is in Queens, with Manhattan next at 34 percent of the space.

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