CapitaLand assumes $29.2M in debt at hotel in Midtown West

CapitaLand through the entity Aspinden Land LLC as borrower assumed debt as part of an acquisition, with bondholders of COMM 2015-CCRE22 valued at $29.2 million for the hotel building (H3) at 15 West 45th Street in Midtown West, Manhattan. CapitaLand bought the fee under the property for $38 million at the same time, which was recorded last month. The company already controlled the property through a ground lease.
The deal closed on December 28, 2022 and was recorded on February 2, 2023. The prior lender was COMM 2015-CCRE22 which held debt that had an original loan amount of $29.2 million. The property has 44,836 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $651 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 on December 28, 2022, for $38 million. The signatory for CapitaLand was Eaton Zhou. The signatory for COMM 2015-CCRE22 was Arnold Shulkin. CapitalLand bought the fee from Eaton Vance. This is the CapitalLand assuming the remaining debt. Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Lily Sanders, head officer and Louis Llach, agent. The business entities are Real Hospitality Group and Aspinden Trs Llc.

The property

The 15 West 45th Street parcel has frontage of 33 feet and is 100 feet deep with a total lot size of 3,377 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $13.3 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 $2,375 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 Midtown West, the majority, or 75 percent of the 76 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 13.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 96 commercial properties representing 362,807 square feet of the 2,590,179 square feet. The largest owner is Sanjay Hirawat, followed by Oleg Klempner and then OMI Jewelry.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Capitaland owned at least two commercial properties in New York City with 125,836 square feet and a city-determined market value of $44.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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