Black Bear Asset Management signs $58M refi for office condo in SoHo

Black Bear Asset Management through the entity 507 Broadway LLC as borrower signed a refi loan with lender Morgan Stanley through the entity Morgan Stanley Bank valued at $58 million for the office condo at 503 Broadway in SoHo, Manhattan.
The deal closed on June 7, 2023 and was recorded on June 12, 2023. The prior lender was Principal Life Insurance Company which held debt that had an original loan amount of $60 million.
The property has 129,847 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $446 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 Black Bear Asset Management was William Fung.

The property

The office condo in SoHo has 129,847 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 129,847 square feet. The city-designated market value for the property in 2022 is $40.6 million. The most recent loan totaled $60 million and was provided by Principal Life Insurance Company on May 20, 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 not received any significant violations 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 SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 2.1 times the average sales volume among other neighborhoods with $747.9 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 383,038 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 five of the nine commercial properties representing 164,671 square feet of the 247,434 square feet. The largest owner is WB Property Group, followed by JPMorgan Chase and then David Zahabian.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 247,434 square feet of built space are office buildings, with mixed-use buildings next occupying 15 percent of the space.

The borrower

The PincusCo database currently indicates that Black Bear Asset Management owned at least three commercial properties with 56 residential units in New York City with 31,533 square feet and a city-determined market value of $8.5 million. (Market value is typically about 50% of actual value.) The portfolio has $79.5 million in debt, borrowed from Principal Life Insurance Company and Morgan Stanley. Within the portfolio, all identified are walkup properties. They are all located in Manhattan.

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