Chetrit Group, Stellar sign $365M refi loan with Bank of Montreal for 3 UWS rentals

The Chetrit Group and Stellar Management through the entity Cf Pwv LLC as borrower signed a refi loan with lender Bank of Montreal valued at $365 million for three residential elevator properties including the 287-unit residential elevator building (D3) at 792 Columbus Avenue in Upper West Side, Manhattan, 287-unit residential elevator building (D3) at 788 Columbus Avenue in Upper West Side, Manhattan, and 287-unit residential elevator building (D3) at 784 Columbus Avenue in Upper West Side, Manhattan.
The deal closed on August 3, 2022 and was recorded on August 31, 2022. The prior lender was a securitized loan, Series 2017-C2, which held debt that had an original loan amount of $138.8 million.The three properties have 773,280 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $472 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 signatories for the Chetrit Group and Stellar Management were Meyer Chetrit and Adam Roman. The signatory for Bank of Montreal was Leanne M. Lispi. The financing includes a $226.25 million gap loan.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 792 Columbus Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jeffrey Davis, head officer and Dan Flannigan, officer. The business entity is Pwv Acquisition Owner Llc. The three properties with a total of 773,280 square feet of built space generated revenue of $23.6 million per year or $31 per square foot.

The property

The 792 Columbus Avenue parcel has frontage of 318 feet and is 247 feet deep with a total lot size of 24,757 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $35.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received 13 DOB violations, five housing violations, and $400 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 block

On the tax block of 792 Columbus Avenue, PincusCo has identified the owners of 18 of the 26 commercial properties representing 920,463 square feet of the 2,609,639 square feet. The two identified owners are UDR, Inc. and Eastgold Properties.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 1.9 million square feet of built space are elevator buildings, with specialty buildings next occupying 48 percent of the space.

The borrower

The PincusCo database currently indicates that Stellar Management owned at least 81 commercial properties in New York City with 9,520,510 square feet and a city-determined market value of $1.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.9 billion in debt, with top three lenders as Goldman Sachs, New York Community Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 74 percent of the 9,520,510 square feet of built space are elevator properties, with office properties next occupying 9 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Bronx next at 12 percent of the space.
The PincusCo database currently indicates that Chetrit Group owned at least 32 commercial properties in New York City with 3,857,499 square feet and a city-determined market value of $699.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Bank of Montreal, Starwood Mortgage Capital, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 33 percent of the 3,857,499 square feet of built space are office properties, with elevator properties next occupying 24 percent of the space. The bulk, or 63 percent of the built space, is in Manhattan, with Queens next at 31 percent of the space.

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