Blue Sea Development signs $48M loan with ORIX for elevator building in Harlem

Blue Sea Development Company through the entity Church Home Associates, L.P. as borrower signed a loan with lender ORIX Real Estate through the entity Orix Real Estate Capital, LLC valued at $48 million for two properties including the 161-unit residential elevator building at 89 Lenox Avenue in Harlem, Manhattan and another parcel on Lenox Avenue.
The deal closed on December 30, 2021 and was recorded on January 27, 2022.
The two properties have 154,962 square feet of built space and 121,248 square feet of additional air rights for a total buildable of 276,421 square feet according to PincusCo analysis of city data. The loan price per built square foot is $309 and the price per buildable square foot is $173 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 Blue Sea Development Company was Avery Seavey. The signatory for ORIX Real Estate was Corey Morse.
Out of the two properties, one with a total of 154,962 square feet of built space generated revenue of $4.4 million per year.

Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $121,500. One of the projects were to change the building from a J-2 to a R-2.
Avery Seavey is a principal of Blue Sea Development.

In Harlem, the bulk, or 42 percent of the 99.7 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Harlem has 2.2 times the average sales volume among other neighborhoods with $607.8 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Harlem has 2.8 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Manhattan. It had 2.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.
On the tax block, the majority, or 91 percent of the 335,571 square feet of built space are residential elevator buildings, with specialty buildings next occupying 9 percent of the space.
The owners according to the Department of Housing Preservation and Development includes Nealle Seavey, head officer and Steve Hevia, officer. The business entity is Church Home Associates.
Within a 400-foot radius of 89 Lenox Avenue, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Avenel Development & Construction bought an industrial (G7) building on Lenox Avenue for $16.2 million from Avenel Development & Construction on April 7, 2021.

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