Alexico Group signs $300M senior refi with Goldman for Mark Hotel in Lenox Hill, part of $325M package

Izak Senbahar’s Alexico Group through the entity Mark Propco LLC (and others) as borrower signed a refi senior loan with lender Goldman Sachs through the entity Goldman Sachs Bank USA valued at $300 million for two properties including the Mark Hotel building (H1) at 25 East 77th Street in Lenox Hill, Manhattan and four-unit mixed-use building (S9) at 1000 Madison Avenue in Lenox Hill, Manhattan. The financing includes an unrecorded $25 million mezzanine loan. The hotel is on a ground lease.
The deal closed on June 13, 2024 and was recorded on June 20, 2024. The prior lender was Series 2022-Mark which held debt that had an original loan amount of $190 million. The two properties have 193,517 square feet of built space and 15,688 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $1,550 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 Alexico Group was Nesim Bahar. The signatory for Goldman Sachs was Steve Pack. The Commercial Observer reported the $300 million will be packaged as a CMBS and there is an additional $35 million mezzanine loan outside of the securitized structure.

Alexico Group obtained a $200 million loan from JPMorgan Chase in 2017 which was securitized through Series 2017-Mark, then refinanced with Credit Suisse (through Column Financial) in 2022 and securitized into Series 2022-Mark. That loan was assigned to Goldman Sachs.

The property fee owners, the Sol Goldman estate’s Solil Management, borrowed $58 million in November 2016 from First Republic Bank which is now held by JPMorgan Chase.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Judith Brener, head officer and Izak Senbahar, officer. The business entities are Mark Hotel Management Llc and Madison Seventy-Seventh L.L.C.

The property

The hotel building in Lenox Hill has 193,517 square feet of built space and 15,688 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 102 feet and is 120 feet deep with a total lot size of 12,260 square feet. The zoning is C5-1 which allows for up to 4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $80 million. The most recent loan totaled $190 million and was provided by Credit Suisse on June 6, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $5,495 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.3 billion in sales volume in the last two years. For development, Lenox Hill is the 7th most active neighborhood among other neighborhoods. It had 5.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On the tax block of 21-35 East 77th, PincusCo has identified the owners of seven of the 10 commercial properties representing 278,761 square feet of the 340,478 square feet. The largest owner is Thor Equities, followed by Siba Residences and then Sackman Enterprises.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 340,478 square feet of built space are hotel buildings, with specialty buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Alexico Group owned at least three commercial properties with 11 residential units in New York City with 198,117 square feet and a city-determined market value of $88.5 million. (Market value is typically about 50% of actual value.) The portfolio has $190 million in debt, borrowed from Credit Suisse. Within the portfolio, the bulk, or 93 percent of the 198,117 square feet of built space are hotel properties, with mixed-use properties next occupying 4 percent of the space. They are all located in Manhattan.

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