BD Hotels signs $45.9M refi loan with Deka Immobilien for hotel in Murray Hill

BD Hotels through the entity BD Pod 39, LLC as borrower signed a refi loan with lender Deka Immobilien through the entity Dekabank Deutsche Girozentrale valued at $45.9 million for the hotel building (H3) at 141 East 39th Street in Murray Hill, Manhattan.
The deal closed on November 1, 2023 and was recorded on November 3, 2023. The prior lender was Citizens Bank which held debt that had an original loan amount of $47 million.

The property has 78,415 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $585 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 July 21, 2010, for $27.8 million. The signatory for BD Hotels was Richard Born. The signatory for Deka Immobilien was Albert Burklen and Michael McAuliffe.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Timmerman, head officer and Sothearith Te, officer. The business entity is BD Pod 39 LLC.

The property

The hotel building in Murray Hill has 78,415 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 70 feet and is 98 feet deep with a total lot size of 6,994 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $49.8 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 two DOB violations and $1,550 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 neighborhood

In Murray Hill, The majority, or 54 percent of the 11 million square feet of commercial built space are elevator buildings, with office buildings next occupying 22 percent of the space. In sales, Murray Hill has 3 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 12th highest in Manhattan. For development, Murray Hill has had very little major development activity relative to other neighborhoods.It had 458,332 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 14 of the 35 commercial properties representing 764,398 square feet of the 1,544,916 square feet. The largest owner is Suppiah Kameshwara, followed by Steven Tatti and then Sol Goldman Investments.
On the tax block, there were two new building construction projects totaling 42,209 square feet. The largest is a 16-unit, 21,903 square-foot residential (R-2) building submitted by Adam Gordon with plans filed January 30, 2020 and it has not been permitted yet. The second largest is a 40-unit, 20,306 square-foot hotel/dormitory/shelter (R-1) building submitted by Terence Cheng with plans filed October 10, 2017 and it has not been permitted yet.

The majority, or 76 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that BD Hotels owned at least 16 commercial properties in New York City with 1,125,443 square feet and a city-determined market value of $402.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 99 percent of the 1,125,443 square feet of built space are hotel properties, with walkup properties next occupying 1 percent of the space. They are all located in Manhattan.

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