Cammeby’s International signs $85M loan with Citibank for office in Financial District

Cammeby’s International Group through the entity 39 Cam LLC as borrower signed a loan with lender Citibank through the entity Citi Real Estate Funding Inc. valued at $85 million for the office building (O4) at 39 Broadway in the Financial District, Manhattan.
The deal closed on July 7, 2022 and was recorded on July 14, 2022. The property has 447,452 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $189 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 in 1998.

Prior sales and revenue

The 447,452-square-foot property generated revenue of $19 million or $42 per square foot, according to the most recent income and expense figures.

The property

The 39 Broadway parcel has frontage of 88 feet and is 190 feet deep with a total lot size of 17,440 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 $62.9 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 not received any significant violations 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 Financial District, the majority, or 71 percent of the 85.2 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Financial District is the 5th most active neighborhood among other neighborhoods. It had 7.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the six commercial properties representing 1,117,873 square feet of the 1,486,188 square feet. The largest owner is Cammeby’s International Group, followed by Harbor Group International and then Jeffries Morris, Inc..
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 1.5 million square feet of built space are office buildings, with mixed-use buildings next occupying 3 percent of the space.

Surrounding

Within a 400-foot radius of 39 Broadway, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, one was for major renovation including a certificate of occupancy change. It was a permit issued on July 21, 2021 for the $17.7 million renovation of 72,258-square-foot R-2 building with 566 residential units at 60 Broadway.
One of those seven items was a sale which Hiu Ian Cheng bought the 27,640-square-foot, four-unit mixed-use building (K4) on 47 Broadway for $12.2 million from Riese Organization on April 8, 2022.
Of those seven items, five were loans above $5 million totaling $539.7 million. The most recent of the five was Hiuian Cheng which borrowed $8.6 million from CTBC Bank secured by the 27,640-square-foot, four-unit mixed-use building (K4) on 47 Broadway on April 26, 2022.

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