Bobby Zar’s ZG Capital signs $28.9M refi for retail in Greenwich Village

Bobby Zar’s ZG Capital Partners through the entity 836 Broadway Partners LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $28.9 million for the retail building (O5) at 836 Broadway in Greenwich Village, Manhattan.
The deal closed on November 25, 2024 and was recorded on December 11, 2024. The prior lender was Ladder Capital which held debt that had an original loan amount of $37.5 million.The property has 56,827 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $507 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 8, 2021, for $39.2 million. The signatory for ZG Capital Partners was Babak Zar, who is known as Bobby Zar.

Prior sales and revenue

The 56,827-square-foot property generated revenue of $2.5 million or $44 per square foot, according to the most recent income and expense figures.

The property

The retail building in Greenwich Village has 56,827 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 152 feet deep with a total lot size of 9,967 square feet. The lot is irregular. The zoning is C6-1 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $10.3 million. The most recent loan totaled $37.5 million and was provided by Ladder Capital on December 8, 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 one DOB violation and $10,350 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 $1 million on this tax lot.

The neighborhood

In Greenwich Village, The bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has the 6th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Greenwich Village has 2.5 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 10 commercial properties representing 179,746 square feet of the 504,834 square feet. The largest owner is KSL Capital Partners, followed by ZG Capital Partners and then Topaz Realty Management.
On the tax block, there was one new building construction project filed totaling 69,504 square feet. It is a 69,504 square-foot business (B) building submitted by Samsom Klugman with plans filed June 10, 2016 and it has not been permitted yet.

The majority, or 40 percent of the 504,834 square feet of built space are retail buildings, with office buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that ZG Capital Partners owned at least four commercial properties with eight residential units in New York City with 552,589 square feet and a city-determined market value of $194.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 86 percent of the 552,589 square feet of built space are office properties, with retail properties next occupying 10 percent of the space. They are all located in Manhattan.

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