A&E Real Estate signs $212.7M in modifications, extensions with Signature Bank for 34 rentals in NYC
A&E Real Estate Holdings signed 17 loan modification and extension agreements with Signature Bank valued at $212.7 million for 34 properties with a total of 937 residential units Manhattan, Brooklyn and Queens.
In the largest of the modifications, A&E Real Estate Holdings through the entity 339-347 East 12th Street Investor, LLC as borrower signed a refi loan with lender Signature Bank valued at $21.9 million for two residential walkup properties including the 37-unit residential walkup building (C7) at 345 East 12th Street in East Village, Manhattan and 37-unit residential walkup building (C1) at 339 East 12th Street in East Village, Manhattan.
The deal closed on August 15, 2022 and was recorded on October 24, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $22.2 million.The two properties have 43,148 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $508 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 Alex T. Bruce. The signatory for Signature Bank was Elizabeth Arato.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 345 East 12th Street.
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 339-347 East 12 Street Investor, Llc. The two properties with a total of 43,148 square feet of built space generated revenue of $2.3 million per year or $53 per square foot.
The property
The 345 East 12th Street parcel has frontage of 50 feet and is 103 feet deep with a total lot size of 5,163 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.2 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received four DOB violations, six housing violations, and $2,580 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 the tax block of 345 East 12th Street, PincusCo has identified the owners of 20 of the 26 commercial properties representing 228,444 square feet of the 287,654 square feet. The largest owner is Kambiz Hakim, followed by A&E Real Estate Holdings and then Icon Realty Management.
There are no active new building construction projects on this tax block.
The majority, or 90 percent of the 287,654 square feet of built space are walkup buildings, with mixed-use buildings next occupying 10 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 $2.4 billion in debt, with top three lenders as Signature Bank, JPMorgan Chase, and Mesa West Capital 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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