BLDG signs $15M loan with State Farm for 86-unit rental in Sutton Place

BLDG Management through the entity Lkdg Associates as borrower signed a loan with lender State Farm Realty Mortgage valued at $15 million for the midblock 86-unit residential elevator building at 412 East 55th Street in Sutton Place, Manhattan.
The deal closed on May 12, 2022 and was recorded on May 31, 2022. The property has 89,400 square feet of built space and 11,045 square feet of additional air rights for a total buildable of 100,410 square feet according to PincusCo analysis of city data. The loan price per built square foot is $167 and the price per buildable square foot is $149 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.)

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ashley Innamorato, head officer and Minir Zhaku, officer. The business entity is Lkdg Associates. The 89,400-square-foot property generated revenue of $2.9 million or $32 per square foot, according to the most recent income and expense figures.

The property

The 412 East 55th Street parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,041 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $11.8 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 three DOB violations and one housing violation 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 neighborhood

In Sutton Place, the majority, or 88 percent of the 14.7 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 3 percent of the space. In sales, Sutton Place has had very little sales volume relative to other neighborhoods with $71.5 million in sales volume in the last two years. For development, Sutton Place has had very little major development activity relative to other neighborhoods.It had 14,961 square feet of commercial and multi-family construction under development in the last two years, which represents 0.10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing 201,192 square feet of the 648,784 square feet. The two identified owners are Robert Kushner and BLDG Management. There are no active new building construction projects on this tax block.

all properties are residential elevator.

Surrounding

Within a 400-foot radius of 412 East 55th Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $87.6 million. The most recent of the three was 36 Sutton South cooperative which borrowed $10 million from Investors Bank secured by the 147,000-square-foot, 102-unit co-op (D4) on 36 East 56th Street on May 23, 2022.

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