Circle F Capital signs $46.1M refi loan with 3650 REIT for retail in Financial District
Circle F Capital through the entity 1 Park Row Development, LLC as borrower signed a refi loan with lender 3650 REIT through the entity 3650 Cal Bridge Opr LLC valued at $46.1 million for the retail building (K2) at 1 Park Row in Financial District, Manhattan.
The deal closed on June 10, 2024 and was recorded on June 21, 2024. The property has 42,200 square feet of built space and 14,517 square feet of additional air rights for a total buildable of 56,710 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,092 and the price per buildable square foot is $812 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 property
The retail building in Financial District has 42,200 square feet of built space and 14,517 square feet of additional air rights for a total buildable of 56,710 square feet according to a PincusCo analysis of city data. The parcel has frontage of 85 feet and is 140 feet deep with a total lot size of 5,671 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.4 million. The most recent loan totaled $90 million and was provided by Parkview Financial on May 27, 2021.
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 one DOB violation and $2,350 in OATH penalties in the last year.
Development
On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 70,802 square feet. The largest is a major alteration project for a 19-unit, 84,369 square-foot R-2 building submitted by David Feldman with plans filed July 12, 2019 and permitted May 25, 2022. The second largest is a new building project for a 21,482 square-foot M building submitted by Meilech Weiss with plans filed October 19, 2017 and it has not been permitted yet. On the tax lot, the most recent condominium plan was filed by 1 PARK ROW DEVELOPMENT, LLC to create 64 residential units and 1 commercial units in a building at 1 Park Row in Financial District, Manhattan, called 1 Park Row Condominium, according to an February 5, 2024 submission to the New York State Attorney General. The principals of the sponsor, 1 PARK ROW DEVELOPMENT, LLC, were David Feldman and Gary Feldman.
The neighborhood
In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 44,273 square feet of the 321,773 square feet. The two identified owners are Circle F Capital and Atlas Capital Group.
On the tax block, there were three new building construction projects totaling 360,621 square feet. The largest is a 110-unit, 266,238 square-foot residential (R-2) building submitted by L+M Development Partners and filed by David Dishy with plans filed April 5, 2016 and permitted December 1, 2016. The second largest is a 31-unit, 72,901 square-foot residential (R-2) building submitted by Ira Weidhorn with plans filed July 15, 2015 and permitted June 3, 2016.
The majority, or 83 percent of the 321,773 square feet of built space are elevator buildings, with retail buildings next occupying 13 percent of the space.
The borrower
The PincusCo database currently indicates that Circle F Capital owned at least two commercial properties with 15 residential units in New York City with 62,130 square feet and a city-determined market value of $8.6 million. (Market value is typically about 50% of actual value.) The portfolio has $133.1 million in debt, with top three lenders as Parkview Financial, Maxim Credit Group, and Ladder Capital respectively. Within the portfolio, the bulk, or 68 percent of the 62,130 square feet of built space are retail properties, with elevator properties next occupying 32 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Queens next at 32 percent of the space.
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