Chinese congomerate signs $24M refi loan with Citibank for hotel in Chelsea
The China-based Han’s Holding Group through the entity Han’s 28 Hospitality LLC as borrower with Peter Pingzhi Wu as signatory, signed a refi loan with lender Citibank valued at $24 million for the hotel building (H2) at 121 West 28th Street in Chelsea, Manhattan.
The deal closed on July 31, 2024 and was recorded on August 9, 2024. The prior lender was Citibank which held debt that had an original loan amount of $31.7 million.
The property has 71,500 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $335 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 July 7, 2016, for $53.8 million. The signatory for Peter Pingzhi Wu was Peter Pingzhi Wu. The signatory for Citibank was Scott DeTragalia.
Han’s Holdings Group, also known as Han’s Group, is a property development company as well as a manufacturing company based in Shenzhen, China.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Yun Feng Gao, also known as Gao Yunfeng, individual owner and Paul Lee, site manager. The business entity is Hans 28 Hospitality Llc.
The property
The hotel building in Chelsea has 71,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,938 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 $22.6 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 four DOB violations and $6,500 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 Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 9th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Chelsea has 1.5 times the average amount of major developments relative to other neighborhoods and is the 19th highest in Manhattan. It had 1.7 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 nine of the 32 commercial properties representing 887,988 square feet of the 1,556,271 square feet. The largest owner is Concord Hospitality, followed by Daniel Yi and then Ira Lifshutz.
On the tax block, there were two new building construction projects totaling 142,049 square feet. The largest is a 350-unit, 112,341 square-foot hotel/dormitory/shelter (R-1) building submitted by Lightstone Group and filed by Joseph Teichman with plans filed January 10, 2014 and permitted March 28, 2016. The second largest is a 37-unit, 29,708 square-foot residential (R-2) building submitted by Hasso Gulrajaney with plans filed May 13, 2015 and it has not been permitted yet.
The majority, or 54 percent of the 1.6 million square feet of built space are office buildings, with hotel buildings next occupying 31 percent of the space.
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