Behrooz Hedvat signs $6M refi loan with Signature Bank for office building in Kips Bay

Behrooz Hedvat through the entity 31 Capital LLC as borrower signed a refi loan with lender Signature Bank valued at $6 million for the four-unit office building at 237 East 31st Street in Kips Bay, Manhattan.
The deal closed on February 2, 2022 and was recorded on February 11, 2022. The prior lender was Xyston Group LLC which held debt that had an original loan amount of $2.8 million.
The property has 8,740 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $686 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 4, 2018, for $5.8 million.
The signatory for Behrooz Hedvat was Behrooz Hedvat. The signatory for Signature Bank was Kenneth A. Stagnari.
The 8,740-square-foot property generated revenue of $397,470 or $45 per square foot, according to the most recent income and expense figures.

Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 2 renovation/alteration projects (A2) applied for with a total estimated value of $501,000.
In Kips Bay, the majority, or 56 percent of the 26.9 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 29 percent of the space. In sales, Kips Bay has 2.5 times the average sales volume among other neighborhoods with $688.3 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Kips Bay has had very little major development activity relative to other neighborhoods.It had 624,586 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
On the tax block, the majority, or 40 percent of the 281,468 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 19 percent of the space.
The owner according to the Department of Housing Preservation and Development is Ghassem Terrani, head officer. The business entity is Kips Bay Holding Corp.
Within a 400-foot radius of 237 East 31st Street, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1.7 million. The most recent of these two items was the filing on February 12, 2020 for a 5,219-square-foot R-2 building with eight residential units at 555 Second Avenue.
Of those 10 items, four were sales above $5 million totaling $24.4 million. The most recent of the four was Two Rivers Property Group which bought the 5,620-square-foot, nine-unit rental (C4) on 210 East 31st Street and one other property for $5.7 million from Paul Lestingi on January 4, 2022.
Of those 10 items, four were loans above $5 million totaling $110.6 million. The most recent of the four was Arthur Haruvi which borrowed $62.2 million from Bethpage Federal Credit Union secured by the 9,270-square-foot, 20-unit rental (C4) on 219 East 32nd Street and 24 other properties on December 9, 2021.

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