Daishin Securities cuts debt in half to $50M at office in Midtown East

Korean financial firm Daishin Securities through the entity DS40Owner LLC as borrower signed a refi loan with a corporate affiliate, the entity Daishin F & I Co., Ltd valued at $50 million for the office building (O9) at 400 Madison Avenue in Midtown East, Manhattan.
The deal closed on November 2, 2023 and was recorded on November 17, 2023. The prior lender was Daishin Securities which held debt that had an original loan amount of $105 million.The property has 146,191 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $342 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 October 24, 2018, for $194.5 million. The signatory for the borrower Daishin Securities was Myoung Kuk Kim. The signatory for the lender Daishin Securities was Seong Kyun Ju. This is a loan modification of a November 2021 loan with an original principal of $105 million, in which the borrower paid down by $55 million, the maturity date was extended to November 15, 2025, Capstone US Private Real Estate Investment Trust No. 14 made a $25 million preferred equity loan replacing a prior unspecified preferred equity loan.

The property

The office building in Midtown East has 146,191 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 44 feet deep with a total lot size of 8,986 square feet. The zoning is C5-3 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 property is in the Individual Landmark. The city-designated market value for the property in 2022 is $68.1 million. The most recent loan totaled $105 million and was provided by Daishin Securities on November 8, 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 $300 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 Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.7 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 19.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 31 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 17 commercial properties representing 2,828,603 square feet of the 3,117,049 square feet. The largest owner is Stawski Partners, followed by Solil Management and then Namdar Realty Group.
On the tax block, there was one new building construction project filed totaling 1,862,831 square feet. It is a 1,862,831 square-foot business (B) building submitted by JPMorgan Chase and filed by Devin Maher with plans filed June 26, 2019 and permitted November 30, 2021.

The majority, or 90 percent of the 3.1 million square feet of built space are office buildings, with retail buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Daishin Securities owned at least one commercial property in New York City with 146,191 square feet and a city-determined market value of $68.1 million. (Market value is typically about 50% of actual value.) The portfolio has $105 million in debt, borrowed from Daishin Securities. The portfolio consists of at least a single office property. It is located in Manhattan.

Direct link to Acris document. link