Andrew Roos, Michael T. Cohen, Robert Getreu sign $34M refi with Apple Bank for office in Flatiron District

Andrew Roos, Michael T. Cohen, and Robert Getreu through the entity Gramercy Five LLC as borrower signed a refi loan with lender Apple Bank for Savings valued at $34 million for the office building (O3) at 120 East 23rd Street in Flatiron District, Manhattan.
The deal closed on October 27, 2022 and was recorded on November 2, 2022. The prior lender was Apple Bank for Savings which held debt that had an original loan amount of $34 million. The property has 200,757 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $169 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 Andrew Roos, Michael T. Cohen, and Robert Getreu was Andrew Roos, Michael T. Cohen, and Robert Getreu. The signatory for Apple Bank for Savings was Cynthia Wang. This extends the loan to November 1, 2025.

Prior sales and revenue

The 200,757-square-foot property generated revenue of $10.8 million or $54 per square foot, according to the most recent income and expense figures.

The property

The 120 East 23rd Street parcel has frontage of 100 feet and is 197 feet deep with a total lot size of 17,281 square feet. The lot is irregular. 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 city-designated market value for the property in 2022 is $46.6 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 $6,150 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 neighborhood

In Flatiron District, the majority, or 72 percent of the 23.8 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 4.3 times the average sales volume among other neighborhoods with $1.5 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Flatiron District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 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 six of the 19 commercial properties representing 701,957 square feet of the 1,229,553 square feet. The largest owner is Mark D. Kalimian, followed by Cheer Land Investment Group and then New York State.
On the tax block, there was one new building construction project filed totaling 79,366 square feet. It is a 51-unit, 79,366-square-foot R-2 building developed by Kent Cheng with plans filed July 7, 2014 and permitted July 29, 2016.

The majority, or 37 percent of the 1.2 million square feet of built space are specialty buildings, with elevator buildings next occupying 33 percent of the space.

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