Atlas Hospitality signs $41.5M refi with Bank of America for hotel in Financial District
Atlas Hospitality through the entity 120-122 Water Street LLC as borrower signed a refi loan with lender Bank of America valued at $41.5 million for the 128-key hotel building (HB) at 120-122 Water Street in Financial District, Manhattan.
The deal closed on January 30, 2024 and was recorded on March 7, 2024. The prior lender was Bank of America which held debt that had an original loan amount of $40 million.The property has 54,432 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $762 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 owner bought the property on October 1, 2015, for $20.1 million. The signatory for Atlas Hospitality was Balram Kakkar and Vinod Chand. The signatory for Bank of America was John Grassia.
The property
The hotel building in Financial District has 54,432 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 36 feet and is 94 feet deep with a total lot size of 2,877 square feet. The lot is irregular. The zoning is C5-5 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 city-designated market value for the property in 2022 is $17.5 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 $2,285 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 128-unit, 44,773 square-foot R-1 building. The project was submitted by Atlas Hospitality and filed by Raj Guru with plans filed December 22, 2014 and permitted February 1, 2019.
The neighborhood
In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 10.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 1,250,049 square feet of the 1,327,095 square feet. The largest owner is Rudin Management, followed by Mack Real Estate Group and then Breakwater.
On the tax block, there was one new building construction project filed totaling 44,773 square feet. It is a 128-unit, 44,773 square-foot hotel/dormitory/shelter (R-1) building submitted by Atlas Hospitality and filed by Raj Guru with plans filed December 22, 2014 and permitted August 21, 2017.
The majority, or 93 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 7 percent of the space.
The borrower
The PincusCo database currently indicates that Atlas Hospitality owned at least one commercial property in New York City with 30,328 square feet and a city-determined market value of $13.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Manhattan.
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