Burnett Equities signs $71M rehab loan with Columbia Pacific for hotel in Penn Plaza

Burnett Equities through the entity Wdco Nyc Martinique Hotel LLC as borrower signed a rehab construction loan with lender Columbia Pacific Advisors through the entity CPIF Lending, LLC valued at $71 million for the hotel building at 1260 Broadway in Penn Plaza, Manhattan.
The deal closed on November 9, 2021 and was recorded on April 25, 2022. The prior lender was Columbia Pacific Advisors which held debt that had an original loan amount of $50.5 million.

The property has 278,905 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $254 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.)
Burnett acquired the ground leasehold in November 2021, valued at $52 million. The signatory for Burnett Equities was Andrew Burnett. The signatory for Columbia Pacific Advisors was Brad Shain.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Bernard Sillins, head officer and Salvatore Tuccelli, officer. The business entities are Herald Hotel Associates, Lp, Thurcon Properties Ltd., and Season Affiliates.

The property

The 1260 Broadway parcel has frontage of 93 feet and is 122 feet deep with a total lot size of 19,975 square feet. The lot is irregular. The zoning is C6-6 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 $61.2 million.The most recent loan totaled $50.5 million and was provided by Columbia Pacific Advisors on November 9, 2021.

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 15 DOB violations, $28,100 in ECB penalties, and $30,550 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 $5 million on this tax lot.

The neighborhood

In Penn Plaza, the majority, or 68 percent of the 22.9 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 11 percent of the space. In sales, Penn Station has near average sales volume among other neighborhoods with $315.7 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Penn Station has 2.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 42 commercial properties representing 649,195 square feet of the 1,812,250 square feet. The largest owner is Burnett Equities, followed by Hersel Torkian and then Capstone Equities. There is one active new building construction project totaling 188,281 square feet. It is a 223-unit, 188,281-square-foot R-2 building developed by Hersel Torkian with plans filed August 29, 2014 and permitted December 11, 2015.

the majority, or 58 percent of the 1.7 million square feet of built space are office buildings, with hotel buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that Burnett Equities owned at least one commercial property with 278,905 square feet and a city-determined market value of $88.6 million. (Market value is typically about 50% of actual value.) The portfolio has $50.5 million in debt, borrowed from Columbia Pacific Advisors. The portfolio consists of at least a single hotel property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 1260 Broadway, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
One of those seven items was a sale which Edmund Jin bought four condo units in the 0-square-foot, 24-unit mixed-use building (RC) on 20 West 33rd Street and zero other properties for $35.3 million from 60 Guilders on October 22, 2020.
Of those seven items, six were loans above $5 million totaling $550.9 million. The most recent of the six was Hai Wha Pak and Chung Ho Pak which borrowed $11 million from East West Bank secured by the 13,194-square-foot, six-unit mixed-use building (K2) on 32 West 32nd Street on March 28, 2022.

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