CIM Group signs $83M loan with AB CarVal for Dominick Hotel in Hudson Square
CIM Group through the entity 246 Spring Street (NY), LLC as borrower signed a loan with lender AB CarVal Investors through the entity Cvi Sa3 Senior Loan Holdings, LLC valued at $83 million for 280 properties with one residential unit including the retail condo at 246 Spring Street in Hudson Square, Manhattan, hotel condo at 246 Spring Street in Hudson Square, Manhattan, and retail condo at 246 Spring Street in Hudson Square, Manhattan.
The Real Deal reported on the refinance last month, including Ramsfield Hospitality Finance as a lender.
The deal closed on June 21, 2023 and was recorded on July 10, 2023. The prior lender was Pacific Western Bank which held debt that had an original loan amount of $87.8 million.
The 280 properties have 221,800 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $374 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 AB CarVal Investors was Paul J. Mullaney.
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 246 Spring Street.
The neighborhood
In Hudson Square, The majority, or 76 percent of the 11.9 million square feet of commercial built space are office buildings, with industrial buildings next occupying 8 percent of the space. In sales, Hudson Square has 2 times the average sales volume among other neighborhoods with $721.2 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, Hudson Square has had very little major development activity relative to other neighborhoods.It had -5,650,598 square feet of commercial and multi-family construction under development in the last two years, which represents -47.66 percent of the neighborhood’s built space.
The block
On the tax block of 246 Spring Street, PincusCo has identified the owners of two of the seven commercial properties representing 93,089 square feet of the 309,301 square feet. The two identified owners are NYC Department Of Education and Icon Realty Management.
There are no active new building construction projects on this tax block.
The majority, or 62 percent of the 309,301 square feet of built space are office buildings, with specialty buildings next occupying 27 percent of the space.
The borrower
The PincusCo database currently indicates that CIM Group owned at least six commercial properties with 732 residential units in New York City with 2,561,190 square feet and a city-determined market value of $477.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 56 percent of the 2,561,190 square feet of built space are office properties, with D6 properties next occupying 44 percent of the space. The bulk, or 71 percent of the built space, is in Brooklyn, with Manhattan next at 29 percent of the space.
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