ATCO signs $83M loan modification with MassMutual for 316-unit rental on Central Park South

ATCO Properties & Management through the entity 40 Cps Associates LLC as borrower signed a refi loan with lender MassMutual through the entity Massachusetts Mutual Life Insurance Company valued at $83 million for the 316-unit residential elevator building (D6) at 40 Central Park South in Midtown West, Manhattan.
The deal closed on May 1, 2023 and was recorded on May 18, 2023. The prior lender was MassMutual which held debt that had an original loan amount of $83 million.
The property has 269,346 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $308 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 ATCO Properties & Management was Damon Hemmerdinger. The signatory for MassMutual was Jonathan C. Neff. This is a loan modification for the loan which matures May 1, 2030.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Dale Hemmerdinger, head officer and Kate Hemmerdinger-Goodman, officer. The business entity is 40 Cps Associates LLC. The 269,346-square-foot property generated revenue of $14.8 million or $55 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 316 residential units in Midtown West has 269,346 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 200 feet deep with a total lot size of 25,606 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $71.5 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 one DOB violation, six housing violations, and $130 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 $1 million on this tax lot.

The block

There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 771,047 square feet of built space are hotel buildings, with elevator buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that ATCO Properties & Management owned at least four commercial properties in New York City with 654,501 square feet and a city-determined market value of $168.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are office properties. They are all located in Manhattan.

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