Atlas Capital ups debt by $27M to $136.5M with MF1 Capital for 330-unit rental in FiDi

Atlas Capital Group through the entity Park Row Owner LLC as borrower signed a refi loan with lender MF1 Capital through the entity Mf1 Capital LLC valued at $136.5 million for six properties with a total of 330 units including the 239-unit rental condo at 15 Park Row in Financial District, Manhattan, 20-unit rental condo at 15 Park Row in Financial District, Manhattan, and 32-unit rental condo at 15 Park Row in Financial District, Manhattan.
The deal closed on June 23, 2022 and was recorded on July 1, 2022. The prior lender was Arbor Realty Trust which held debt that had an original loan amount of $109 million. The six properties have 338,520 square feet of built space and 4,837 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $403 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 Atlas Capital Group was Andrew B. Cohen and Jeffrey A. Goldberger. The signatory for MF1 Capital was Carolyn Burgess. The financing includes $27.5 million in new debt. Atlas bought the 330-unit apartment building through several commercial condo units, for $140 million in 2021.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 15 Park Row.

The property

The 15 Park Row parcel has a total lot size of 179,683 square feet. The city-designated market value for the property in 2022 is $36.2 million.The most recent loan totaled $109 million and was provided by Arbor Realty Trust on January 21, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the six buildings received an initial certificate of occupancy in the last ten years. On these lots, there is one active major alteration construction project for a 285-unit, 343,902-square-foot R-2 building. The project was developed by Rachelle Friedman with plans filed May 21, 2013 and permitted October 29, 2014.

The block

On the tax block of 15 Park Row, PincusCo has identified the owners of eight of the 17 commercial properties representing 370,119 square feet of the 1,632,536 square feet. The largest owner is GFI Capital Resources Group, followed by Atlas Capital Group and then Circle F Capital. There are four active new building construction projects totaling 365,677 square feet. The largest is a 110-unit, 266,238-square-foot R-2 building developed by David Dishy with plans filed April 5, 2016 and permitted September 6, 2017. The second largest is a 31-unit, 72,901-square-foot R-2 building developed by Ira Weidhorn with plans filed July 15, 2015 and permitted November 15, 2016.

The majority, or 83 percent of the 321,773 square feet of built space are residential elevator buildings, with retail buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Atlas Capital Group owned at least eight commercial properties with 1,168,425 square feet and a city-determined market value of $209.1 million. (Market value is typically about 50% of actual value.) The portfolio has $469.9 million in debt, with top three lenders as Square Mile Capital Management, Arbor Realty Trust, and Valley National Bank respectively. Within the portfolio, the bulk, or 66 percent of the 1,168,425 square feet of built space are elevator properties, with rental condo properties next occupying 28 percent of the space. The bulk, or 66 percent of the built space, is in Brooklyn, with Manhattan next at 34 percent of the space.

Surrounding

Within a 400-foot radius of 15 Park Row, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $1.2 million and one permit with a total initial cost of $15.5 million. The most recent of these two items was the permit on May 25, 2022 for a 84,369-square-foot R-2 building with 19 residential units at 1 Park Row.
Of those 11 items, six were sales above $5 million totaling $96.5 million. The most recent of the six was Hyde-Kinerk, Hollie E which bought one condo unit in the 91-unit mixed-use building (RM) at 233 Broadway for $11.4 million from Woolworth 100 Owner LLC on August 12, 2021.
Of those 11 items, three were loans above $5 million totaling $345 million. The most recent of the three was GFI Capital Resources Group which borrowed $130 million from Bank OZK secured by two condo units in the 178,118-square-foot, 69-unit mixed-use building (RM) on 5 Beekman Street on February 2, 2022.

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