CSC Coliving signs $29.5M initial loan with Valley National Bank for specialty in East Harlem

CSC Coliving through the entity CSC 2045 Madison, LLC as borrower signed a initial loan with lender Valley National Bank valued at $29.5 million for the specialty building (M1) at 41 East 129th Street in East Harlem, Manhattan.
The deal closed on October 21, 2021 and was recorded on November 1, 2022. The property has 48,100 square feet of built space and 41,406 square feet of additional air rights for a total buildable of 89,528 square feet according to PincusCo analysis of city data. The loan price per built square foot is $613 and the price per buildable square foot is $329 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 March 26, 2021, for $10.8 million. The signatory for Valley National Bank was Donald K. Secrest. Capital Prep Charter Schools is the tenant to landlord CSC Coliving.

The property

The 41 East 129th Street parcel has frontage of 199 feet and is 135 feet deep with a total lot size of 22,382 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.5 million.The most recent loan totaled $21 million and was provided by Northwind Group on March 26, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $1,280 in ECB penalties and $2,220 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 neighborhood

In East Harlem, the majority, or 51 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has 1.7 times the average sales volume among other neighborhoods with $593.2 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Harlem is the 10th most active neighborhood among other neighborhoods. It had 4.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 23 commercial properties representing 51,646 square feet of the 115,543 square feet. The largest owner is New York City Department of Housing Preservation and Development, followed by Omek Capital and then Alfred Ohebshalom.
On the tax block, there were two new building construction projects totaling 21,904 square feet. The largest is a N/A-unit, 17,917-square-foot E building developed by Karl Geiger with plans filed April 24, 2013 and it has not been permitted yet. The second largest is a seven-unit, 3,987-square-foot R-2 building developed by Rona Reodica with plans filed May 7, 2020 and it has not been permitted yet.

The majority, or 37 percent of the 115,543 square feet of built space are elevator buildings, with walkup buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that CSC Coliving owned at least 10 commercial properties in New York City with 551,533 square feet and a city-determined market value of $150.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 79 percent of the 551,533 square feet of built space are hotel properties, with walkup properties next occupying 10 percent of the space. The bulk, or 90 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.

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