APSEC Holdings buys $8M note secured by office building in Grand Central

APSEC Holdings through the entity Apsec Resolution Trust LLC bought a note with an original principal of $8 million from Bank of Hope secured by Jeong Hoon Kim’s office building (O5) at 4 East 46th Street in Grand Central, Manhattan.
The deal closed on July 29, 2022 and was recorded on September 12, 2022. The prior lender was Bank of Hope which held debt that had an original loan amount of $8 million. The property has 14,835 square feet of built space and 15,316 square feet of additional air rights for a total buildable of 30,150 square feet according to PincusCo analysis of city data.
The owner bought the property on September 30, 2013, for $16.8 million. The signatory for APSEC Holdings was James Kim. The original $8 million was given in 2013. James Kim signed for APSEC Resolution Trust, which is a partnership of APSEC Holdings and Esae Capital Partners.

Prior sales and revenue

The 14,835-square-foot property generated revenue of $822,005 or $55 per square foot, according to the most recent income and expense figures.

The property

The 4 East 46th Street parcel has frontage of 30 feet and is 100 feet deep with a total lot size of 3,015 square feet. The zoning is C5-2.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $3.2 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 $1,250 in ECB penalties and $1,960 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 Grand Central, the majority, or 80 percent of the 43.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has 2.6 times the average sales volume among other neighborhoods with $875.4 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Grand Central has 2.1 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 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 14 commercial properties representing 1,350,312 square feet of the 1,862,980 square feet. The largest owner is Feil Organization, followed by PIA Investments Ltd. and then Heirs of Milton Kimmelman.
There are no active new building construction projects on this tax block.

The majority, or 58 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 41 percent of the space.

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