Breakwater signs $60M refi loan with Macquarie Group for hotel in Financial District

Breakwater through the entity 88 Wall Street LLC as borrower signed a refi loan with lender Macquarie Group through the entity Macquarie Bank Limited valued at $60 million for the Wall Street Hotel at 88 Wall Street in Financial District, Manhattan.
The deal closed on December 19, 2022 and was recorded on December 27, 2022. The prior lender was G4 Development Group which held debt that had an original loan amount of $73 million. The property has 103,297 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $580 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 Breakwater was Matthew Brendle. The signatory for Macquarie Group was Darsha Rama Kumar.

The property

The 82 Wall Street parcel has frontage of 141 feet and is 76 feet deep with a total lot size of 10,200 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $14.7 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 one DOB violation and $5,080 in OATH penalties in the last year.

Development

On the lot, there was one active major alteration construction project for a 181-unit, 110,246 square-foot  hotel (R-1) building. The project was developed by Igor Krnajski with plans filed December 26, 2018 and permitted July 25, 2019.

The neighborhood

In Financial District, the majority, or 74 percent of the 80.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 7th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.3 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. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the six commercial properties representing 1,146,752 square feet of the 1,335,268 square feet. The two identified owners are Rudin Management and Mack Real Estate Group.
On the tax block, there was one new building construction project filed totaling 44,773 square feet. It is a 128-unit, 44,773-square-foot R-1 building developed by Raj Guru with plans filed December 22, 2014 and permitted August 21, 2017.

The majority, or 93 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 7 percent of the space.

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