Archdiocese of NY gets $70M in new debt from Goldman Sachs, for total of $250M at Midtown East commercial

The Roman Catholica Archdiocese of New York as borrower signed a refi loan with lender Goldman Sachs through the entity Goldman Sachs Bank USA valued at $250 million for three properties including the hotel building (H1) at 455 Madison Avenue in Midtown East, Manhattan, office building (O5) at 457 Madison Avenue in Midtown East, Manhattan, and retail building (K2) at 35 East 50th Street in Midtown East, Manhattan.
The deal closed on October 11, 2024 and was recorded on October 16, 2024. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $200 million.
The three properties have 866,090 square feet of built space and 56,256 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $288 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 Archdiocese of New York and Roman Catholic Church was Joseph P. LaMorte. The signatory for Goldman Sachs was Michael T. Seeley. This transaction is adding $70 million new debt to an original principal of $120 million and later $80 million.

The property

The hotel building in Midtown East has 866,090 square feet of built space and 56,256 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 140 feet and is 200 feet deep with a total lot size of 35,720 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $211.7 million. The most recent loan totaled $80 million and was provided by JPMorgan Chase on May 26, 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 two DOB violations and $4,150 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the three 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 Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 16.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 26 percent of the neighborhood’s built space.

The block

On the tax block of 455 Madison Avenue, PincusCo has identified the owners of three of the five commercial properties representing 866,090 square feet of the 1,596,981 square feet. The identified owner is Archdiocese Of New York.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 46 percent of the space.

The borrower

The PincusCo database currently indicates that Roman Catholic Church owned at least 144 commercial properties with 886 residential units in New York City with 4,157,136 square feet and a city-determined market value of $740.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 4,157,136 square feet of built space are specialty properties, with M1 properties next occupying 23 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Queens next at 26 percent of the space.
The PincusCo database currently indicates that Archdiocese Of New York owned at least three commercial properties in New York City with 866,090 square feet and a city-determined market value of $233.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 96 percent of the 866,090 square feet of built space are hotel properties, with retail properties next occupying 4 percent of the space. They are all located in Manhattan.

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