Chelsfield signs $50M refi with Maxim Capital for office in SoHo

UPDATED 7:10 a.m., August 1, 2024: Chelsfield through the entity 580 Broadway LLC as borrower signed a refi loan with lender Maxim Capital Group through the entity Maxim Credit Group, L.L.C. valued at $50 million for the office building (O6) at 580 Broadway in SoHo, Manhattan. The loan includes a $35.8 million refinance of existing debt, and $14.2 million in renovation construction loan.
The deal closed on July 12, 2024 and was recorded on July 26 and July 30, 2024. The prior lender was BridgeInvest which held debt that had an original loan amount of $35 million. The property has 127,597 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $392 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 signatory for Chelsfield was Ryan Fuld. The signatory for Maxim Capital Group was Eric Chan. This property is subject to a ground lease. The borrower is the ground tenant.

Prior sales and revenue

The 127,597-square-foot property generated revenue of $6.8 million or $53 per square foot, according to the most recent income and expense figures.

The property

The office building in SoHo has 127,597 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 51 feet and is 200 feet deep with a total lot size of 9,474 square feet. The lot is irregular. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $39.3 million. The most recent loan totaled 0.0 and was provided by City National Bank Of Florida on January 12, 2023.

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 $4,300 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 $1 million on this tax lot.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 2 times the average sales volume among other neighborhoods with $514 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 216,573 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 office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the seven commercial properties representing 713,597 square feet of the 1,063,967 square feet. The largest owner is Alex Adjmi, followed by Chelsfield and then Madison Capital.
There are no active new building construction projects on this tax block.

All properties are office.

Correction: A prior version of this post only included the $35.8 million refinance loan. The updated post includes the $14.2 million in renovation constructed debt, which was recorded several days later.

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