Capstone, Republic Investment sign $39M refi with Bank of America for hotel in Penn Plaza

Capstone Equities and California-based Republic Investment Group through the entity 17 W 32 St Owner LLC as borrower signed a refi loan with lender Bank of America valued at $39 million for the hotel building (H3) at 17 West 32nd Street in Penn Plaza, Manhattan.
The deal closed on December 11, 2025 and was recorded on December 12, 2025. The prior lender was Argentic Investment Management which held debt that had an original loan amount of $44 million. The property has 64,577 square feet of built space and 7,097 square feet of additional air rights for a total buildable of 71,690 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $603 and the price per buildable square foot is $544 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 August 8, 2019, for $56.5 million. The signatory for Capstone Equities and Republic Investment Group was Justin Adelipour and Behzad Nehmadi . The signatory for Bank of America was Fariborz A. Cohen .

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Justin Adelipour, head officer and Eric Gonzalez, agent. The business entities are Rebel Hospitality and 17 W 32 Street Owners Llc. The 64,577-square-foot property generated revenue of $13.4 million or $208 per square foot, according to the most recent income and expense figures.

The property

The hotel building in Penn Plaza has 64,577 square feet of built space and 7,097 square feet of additional air rights for a total buildable of 71,690 square feet according to a PincusCo analysis of city data. The parcel has frontage of 73 feet and is 98 feet deep with a total lot size of 7,169 square feet. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $24.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $3,200 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 29, 2017. 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 Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has had very little sales volume relative to other neighborhoods with $157.7 million in sales volume in the last two years. For development, Penn Plaza has 2.6 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 19 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 19 commercial properties representing 1,133,264 square feet of the 1,708,285 square feet. The largest owner is Adams & Company, followed by Burnett Equities and then Hersel Torkian.
There are no active new building construction projects on this tax block.

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 Capstone Equities owned at least nine commercial properties in New York City with 1,212,286 square feet and a city-determined market value of $219.4 million. (Market value is typically about 50% of actual value.) The portfolio has $296.8 million in debt, with top three lenders as Corebridge Financial, Argentic Investment Management, and Prosperity Life Group respectively. Within the portfolio, the bulk, or 66 percent of the 1,212,286 square feet of built space are office properties, with hotel properties next occupying 34 percent of the space. The bulk, or 59 percent of the built space, is in Brooklyn, with Manhattan next at 41 percent of the space.

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