Buchbinder & Warren signs $46.4M refi for three properties in Midtown East
Buchbinder & Warren through the entity 2-J LLC as borrower signed a refi loan with lender Apple Bank valued at $46.4 million for three properties with 23 residential units including the 23-unit residential walkup building (C7) at 609-611 Madison Avenue in Midtown East, Manhattan, retail building (K2) at 601-603 Madison Avenue in Midtown East, Manhattan, and retail building (K1) at 42-44 East 58th Street in Midtown East, Manhattan.
The deal closed on May 23, 2024 and was recorded on May 30, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $48.9 million.
The three properties have 69,342 square feet of built space and 77,728 square feet of additional air rights for a total buildable of 147,080 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $668 and the price per buildable square foot is $315 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 Buchbinder & Warren was Lori Buchbinder. The signatory for Apple Bank was Cythia Wang.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 601-603 Madison Avenue.
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 one DOB violation and $975 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 Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.6 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 17.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.
The block
On the tax block of 601-603 Madison Avenue, PincusCo has identified the owners of seven of the 19 commercial properties representing 970,594 square feet of the 1,921,836 square feet. The largest owner is Zohar Ben-Dov, followed by Wilhelm Von Finck Jr. and then Vornado Realty Trust.
There are no active new building construction projects on this tax block.
The majority, or 65 percent of the 1.9 million square feet of built space are office buildings, with retail buildings next occupying 28 percent of the space.
The borrower
The PincusCo database currently indicates that Buchbinder & Warren owned at least 10 commercial properties with 66 residential units in New York City with 163,866 square feet and a city-determined market value of $129.8 million. (Market value is typically about 50% of actual value.) The portfolio has $23 million in debt, borrowed from National Cooperative Bank and Apple Bank for Savings. Within the portfolio, the bulk, or 34 percent of the 163,866 square feet of built space are D0 properties, with retail properties next occupying 30 percent of the space. They are all located in Manhattan.
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