Borough Developers, David Tabak sign $40M refi with QuadReal for rental in Gramercy

Borough Developers and David Tabak through the entity Three One Three LLC as borrower signed a refi loan with lender QuadReal Property Group through the entity Qr Us Finance Reit LLC valued at $40 million for the 87-unit residential rental building at 313 East 17th Street in Gramercy, Manhattan and the adjacent nine-unit rental building at 321 East 17th Street.
The deal closed on May 20, 2026 and was recorded on June 3, 2026. The prior lender was Valley National Bank which held debt that had an original loan amount of $24.8 million.The two properties have 77,499 square feet of built space and 5,478 square feet of additional air rights for a total buildable of 78,488 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $516 and the price per buildable square foot is $509 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.)
David Tabak signed for the borrowers with an alternate version of his name, Meir D. Tabak. The signatory for QuadReal Property Group was Paul Stern .

Prior sales, articles and revenue

The owner according to the Department of Housing Preservation and Development is Ari Koth, head officer. The business entity is 317 East 17th Street Llc.

The property

The specialty building in Gramercy has 77,499 square feet of built space and 5,478 square feet of additional air rights for a total buildable of 78,488 square feet according to a PincusCo analysis of city data. The parcel has frontage of 104 feet and is 106 feet deep with a total lot size of 11,024 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $17.8 million. QuadReal Property Group on May 20, 2026 bought a loan with an original principal of $24.8M from Valley National Bank signed by Roger Rofe, secured by 313 East 17th Street and 321 East 17th Street, when owned by Borough Developers and David Tabak .

Transaction Participants

Andrew E. Auerbach at Bryan Cave Leighton Paisner LLP participated in the transaction on behalf of the lender.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $30,000 in ECB penalties and $42,895 in OATH penalties in the last year.

Development

On these lots, there was a major alteration construction project, M01170336, for an 87-unit, 73,469 square-foot R-2 building. The project was submitted by Borough Developers and filed by Shimon Kleinman with plans filed January 23, 2025 and permitted June 24, 2025.

The neighborhood

In Gramercy, The bulk, or 31 percent of the 11.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Gramercy has near average sales volume among other neighborhoods with $405 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Gramercy has 1.6 times the average amount of major developments relative to other neighborhoods and is the 18th 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 23 percent of the neighborhood’s built space.

The block

On the tax block of 313 East 17th Street, PincusCo has identified the owners of 11 of the 14 commercial properties representing 486,313 square feet of the 505,155 square feet. The largest owner is Nyu Langone Hospitals, followed by Croman Real Estate and then Joyland Management.
On the tax block, there were three new building construction projects totaling 135,201 square feet. The largest is a 40-unit, 55,340 square-foot residential (R-2) building submitted by CIM Group and filed by David Wellspring with plans filed September 7, 2018 and it has not been permitted yet. The second largest is a 50-unit, 55,321 square-foot residential (R-2) building submitted by Minrav Development and filed by Yehuda Mor with plans filed February 10, 2021 and permitted October 15, 2024.

The majority, or 83 percent of the 505,155 square feet of built space are specialty buildings, with walkup buildings next occupying 17 percent of the space.

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