Ben-Josef Group Holdings signs $72M refi for office in Garment District
Ben-Josef Group Holdings through the entity Park House Plaza, LLC as borrower signed a refi loan with lender Bank of America valued at $72 million for the office building (O4) at 104 West 40th Street in Garment District, Manhattan.
The deal closed on November 8, 2024 and was recorded on November 20, 2024. The prior lender was Wells Fargo which held debt that had an original loan amount of $72 million.The property has 173,108 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $415 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 December 12, 2012, for $103 million. The signatory for Ben-Josef Group Holdings was Ronen Ben-Josef. The signatory for Bank of America was Steven T. Sedlak.
The property
The office building in Garment District has 173,108 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 197 feet deep with a total lot size of 15,375 square feet. The lot is irregular. The zoning is C5-3 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 property is in the Individual Landmark. The city-designated market value for the property in 2022 is $52.9 million. The most recent loan totaled $72 million and was provided by Wells Fargo on July 16, 2021.
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 $1,850 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on August 30, 2012. 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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has 3.4 times the average sales volume among other neighborhoods with $858 million in sales volume in the last two years and is the 10th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other office buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of five of the eight commercial properties representing 2,116,757 square feet of the 2,653,617 square feet. The largest owner is Swig Company, followed by Raizada Vaid and then Gfp Real Estate.
There are no active new building construction projects on this tax block.
The majority, or 95 percent of the 2.7 million square feet of built space are office buildings, with hotel buildings next occupying 5 percent of the space.
The borrower
The PincusCo database currently indicates that Ben-Josef Group Holdings owned at least four commercial properties with 138 residential units in New York City with 101,049 square feet and a city-determined market value of $29.2 million. (Market value is typically about 50% of actual value.) The portfolio has $47.2 million in debt, borrowed from Ben-Josef Group Holdings. Within the portfolio, the bulk, or 94 percent of the 101,049 square feet of built space are elevator properties, with M1 properties next occupying 6 percent of the space. The bulk, or 94 percent of the built space, is in Brooklyn, with Manhattan next at 6 percent of the space.
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