Alfa Development signs $11.7M refi for mixed-use in Flatiron District

Alfa Development through the entity First Flatiron LLC as borrower signed a refi loan with lender Citibank through the entity Citi Real Estate Funding Inc. valued at $11.7 million for the nine-residential unit mixed-used building (O6) at 15 West 18th Street in Flatiron District, Manhattan.
The deal closed on January 31, 2024 and was recorded on February 20, 2024. The prior lender was TD Bank which held debt that had an original loan amount of $12 million.
The property has 42,625 square feet of built space and 3,357 square feet of additional air rights for a total buildable of 45,990 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $274 and the price per buildable square foot is $254 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 Alfa Development was Michael Namer. The signatory for Citibank was Jonathan Misher.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Namer, head officer and Michael Namer, shareholder. The business entity is First Flatiron Llc.

The property

The office building with 9 residential units in Flatiron District has 42,625 square feet of built space and 3,357 square feet of additional air rights for a total buildable of 45,990 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 92 feet deep with a total lot size of 4,599 square feet. The zoning is C6-4A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $10.9 million.

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 $3,380 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 22, 2012. 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 Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has near average sales volume among other neighborhoods with $255.6 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Flatiron District has 2.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 2.2 million 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. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 179,383 square feet of the 476,510 square feet. The largest owner is Wharton Properties, followed by Olnick Organization and then Asb Capital Management.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 476,510 square feet of built space are office buildings, with mixed-use buildings next occupying 2 percent of the space.

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