Alf Naman signs $120M construction loan with Marathon for 7-unit West Village conversion

Alf Naman Real Estate through the entity 125 Owners LLC as borrower signed a new construction loan with lender Marathon Asset Management through the entity MAM Collateral Agent, LLC valued at $120 million for the conversion of an industrial building (G1) at 125 Perry Street, also known as 738 Greenwich Street in West Village, Manhattan, to a seven-unit residential building.
The building has a $260.9 million sellout, with two townhouses and five apartments ranging in price from $11.95 million to $85 million. The Real Deal reported on the loan earlier this month.

The deal closed on December 3, 2024 and was recorded on December 26, 2024. The prior lender was First-Citizens Bank & Trust Company which held debt that had an original loan amount of $39.6 million.
The property has 39,628 square feet of built space and 400 square feet of additional air rights for a total buildable of 40,000 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $3,028 and the price per buildable square foot is $3,000 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 May 13, 2022, for $64.2 million. The signatory for Alf Naman Real Estate was Alfred David Naman. The signatory for Marathon Asset Management was Craig Thaler. The original debt was $39.6 million, which was reduced to $24.6 million, which was assigned to Marathon, and then an $81.7 million building loan and a $13.6 million project loan were added.

Prior sales and revenue

The 39,628-square-foot property generated revenue of $1.2 million or $32 per square foot, according to the most recent income and expense figures.

The property

The industrial building in West Village has 39,628 square feet of built space and 400 square feet of additional air rights for a total buildable of 40,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 76 feet and is 92 feet deep with a total lot size of 10,000 square feet. The lot is irregular. The zoning is C1-6A which allows for up to 2 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $7.7 million. The most recent loan totaled $24.6 million and was provided by Marathon Asset Management on December 3, 2024.

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 three DOB violations in the last year.

Development

On the lot, there is one active major alteration construction project, M00769995, for an eight-unit, 38,841 square-foot R-2 building, but the unit count was altered to seven units. The project was submitted by Alf Naman Real Estate and filed by Donnchadh Malone with plans filed July 26, 2022 and permitted September 26, 2024. On the tax lot, the most recent condominium plan was filed by 125 OWNERS LLC to create 8 residential units in a building at 125 Perry Street in West Village, Manhattan, called 125 Perry Street Condominiumthat has a $262.9 million sellout, according to an November 14, 2022 submission to the New York State Attorney General. The principal of the sponsor, 125 OWNERS LLC, was Alf Naman.

The neighborhood

In West Village, The bulk, or 31 percent of the 10.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, West Village has 3 times the average sales volume among other neighborhoods with $775.8 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, West Village has had very little major development activity relative to other neighborhoods.It had 917,757 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 21 commercial properties representing 156,948 square feet of the 212,251 square feet. The largest owner is William Gottlieb Real Estate, followed by Alf Naman Real Estate and then Willkie Farr & Gallagher Registered.
On the tax block, there were two new building construction projects totaling 56,565 square feet. The largest is a six-unit, 28,691 square-foot residential (R-2) building submitted by Kevin Young with plans filed September 30, 2016 and it has not been permitted yet. The second largest is a one-unit, 27,874 square-foot residential (R-2) building submitted by Kevin Young with plans filed August 26, 2016 and permitted January 9, 2019.

The majority, or 47 percent of the 212,251 square feet of built space are walkup buildings, with industrial buildings next occupying 34 percent of the space.

The borrower

The PincusCo database currently indicates that Alf Naman Real Estate owned at least one commercial property in New York City with 39,628 square feet and a city-determined market value of $7.7 million. (Market value is typically about 50% of actual value.) The portfolio has $64.2 million in debt, borrowed from First Citizens Bank and Marathon Asset Management. The portfolio consists of at least a single industrial property. It is located in Manhattan.

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