CBSK, Madison Realty sign $38M construction loan with G4 Capital for 9-unit project in SoHo

SK Development, CB Developers, and Madison Realty Capital through the entity Spring Street Owner, LLC as borrower signed a new construction loan with lender G4 Capital Partners through the entity G4 18239, LLC valued at $38 million for the mixed-use building (K2) at 182 to 186 Spring Street in SoHo, Manhattan.
The deal closed on September 14, 2022 and was recorded on September 28, 2022. The prior lender was ConnectOne Bank which held debt that had an original loan amount of $13.6 million.
The last deed transfer was on June 8, 2017, for $23.6 million. The signatory for SK Development, CB Developers, and Madison Realty Capital was Scott G. Shnay. The signatory for G4 Capital Partners was Jason Behfarin. SK Development has information on the development on its website.

The property

The 182/186 Spring Street parcel has frontage of 50 feet and is 57 feet deep with a total lot size of 2,850 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Sullivan-Thompson Historic District. The city-designated market value for the property in 2022 is $1.3 million. The most recent loan totaled $13.6 million and was provided by ConnectOne Bank on June 12, 2020.

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 $5,425 in ECB penalties and $5,875 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a nine-unit, 25,552 square-foot R-2 building. The project was developed by Scott Shnay with plans filed July 22, 2021 and it has not been permitted yet.

The neighborhood

In SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.6 times the average sales volume among other neighborhoods with $545.1 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 193,942 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 17 of the 26 commercial properties representing 228,249 square feet of the 296,045 square feet. The largest owner is Zucker Organization, followed by P. Zaccaro and then Centaur Properties.
On the tax block, there were three new building construction projects totaling 74,113 square feet. The largest is a 11-unit, 25,952-square-foot R-2 building developed by John Zaccaro with plans filed February 6, 2013 and permitted May 2, 2014. The second largest is a four-unit, 22,609-square-foot R-2 building developed by Larry Greenberg with plans filed March 15, 2017 and it has not been permitted yet.

The majority, or 78 percent of the 231,770 square feet of built space are walkup buildings, with elevator buildings next occupying 14 percent of the space.

The borrower

The PincusCo database currently indicates that Madison Realty Capital owned at least 67 commercial properties in New York City with 2,265,050 square feet and a city-determined market value of $388.3 million. (Market value is typically about 50% of actual value.) The portfolio has $658 million in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and Citibank respectively. Within the portfolio, the bulk, or 57 percent of the 2,265,050 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. The bulk, or 38 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.
The PincusCo database currently indicates that Cb Developers owned at least nine commercial properties in New York City with 225,995 square feet and a city-determined market value of $70.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 62 percent of the 225,995 square feet of built space are hotel properties, with elevator properties next occupying 27 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.
The PincusCo database currently indicates that Sk Development owned at least two commercial properties in New York City with 96,090 square feet and a city-determined market value of $16.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

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