BentallGreenOak, Slate sign $163.4M senior loan for Hell’s Kitchen rental, part of $248M refi

BentallGreenOak and Slate Property Group through the entity Biltmore Owner, LLC as borrower signed a refi loan with lender Affinius Capital through the entity SM Finance III LLC valued at $163.4 million for the 464-unit residential elevator building (D6) at 770 Eighth Avenue in Hell’s Kitchen, Manhattan.
BentallGreenOak and Slate Property Group obtained this senior debt as part of a larger $248 million financing package, which The Commercial Observer previously reported on. Affinius was formerly Square Mile Capital Management.
The deal closed on March 17, 2023 and was recorded on March 27, 2023. The prior lender was Deutsche Pfandbriefbank which held senior debt that had an original loan amount of $151.9 million.

The property has 463,143 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $352 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 BentallGreenOak and Slate Property Group was Matthew Cervino. The signatory for Affinius Capital and Clarion Partners was Brad Cohen.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Chris Niehaus, head officer and Rachel Byrne, site manager. The business entities are Greystar and Biltmore Owner LLC. The 463,143-square-foot property generated revenue of $19 million or $41 per square foot, according to the most recent income and expense figures.

The property

The 770 8th Avenue parcel has frontage of 139 feet and is 100 feet deep with a total lot size of 13,983 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2005 and expires in 2025. The city-designated market value for the property in 2022 is $119.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $800 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the 55 commercial properties representing 121,568 square feet of the 1,982,329 square feet. The two identified owners are Prasit Realty Corp. and Mehran Kohansieh.
There are no active new building construction projects on this tax block.

The majority, or 64 percent of the 720,708 square feet of built space are elevator buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Slate Property Group owned at least 49 commercial properties in New York City with 1,684,803 square feet and a city-determined market value of $424.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 75 percent of the 1,684,803 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Brooklyn next at 26 percent of the space.
The PincusCo database currently indicates that Bentallgreenoak owned at least seven commercial properties in New York City with 1,797,402 square feet and a city-determined market value of $567.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 70 percent of the 1,797,402 square feet of built space are office properties, with elevator properties next occupying 25 percent of the space. The bulk, or 95 percent of the built space, is in Manhattan, with Brooklyn next at 5 percent of the space.

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