Chandrakant Patel signs $35.4M refi loan with Dime for hotel in Garment District

Chandrakant Patel through the entity 4 West 37th Street LLC as borrower signed a refi loan with lender Dime Community Bank valued at $35.4 million for the hotel building (H2) at 4 West 37th Street in Garment District, Manhattan.
The deal closed on September 21, 2022 and was recorded on September 30, 2022. The prior lender was M&T Bank which held debt that had an original loan amount of $37 million. The property has 56,572 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $626 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 June 25, 2014, for $20 million. The signatory for Chandrakant Patel was Chandrakant Patel. The signatory for Dime Community Bank was Mario Colon.

The property

The 4 West 37th Street parcel has frontage of 43 feet and is 98 feet deep with a total lot size of 4,246 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $20 million.The most recent loan totaled $37 million and was provided by M&T Bank on September 20, 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 $6,200 in OATH penalties in the last year.

Development

On the lot, there is one new building construction project for a 143-unit, 46,824 square-foot R-1 building. The project was developed by Richard Fung with plans filed December 4, 2014 and permitted March 9, 2017.

The neighborhood

In Garment District, the majority, or 70 percent of the 51.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.7 times the average sales volume among other neighborhoods with $938.2 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 16th highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 36 commercial properties representing 758,750 square feet of the 1,989,291 square feet. The largest owner is Vanbarton Group, followed by Magna Hospitality Group and then Empire Management.
On the tax block, there were two new building construction projects totaling 241,773 square feet. The largest is a 313-unit, 194,949-square-foot R-1 building developed by Eddie Hidary with plans filed June 14, 2013 and permitted March 3, 2015. The second largest is a 143-unit, 46,824-square-foot R-1 building developed by Richard Fung with plans filed December 4, 2014 and permitted March 9, 2017.

The majority, or 67 percent of the 1.7 million square feet of built space are office buildings, with elevator buildings next occupying 26 percent of the space.

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