Dalan buys $11.2M note at Bahram Benaresh mixed-use in Tribeca

Dalan Real Estate through the entity DC Franklin Lender LLC bought a note with an original principal of $11.2 million from G4 Capital Partners secured by Bahram Benaresh’s five-unit mixed-use building (S5) at 175 Franklin Street in Tribeca, Manhattan.
The deal closed on October 1, 2024 and was recorded on October 23, 2024. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $11.2 million. The property has 15,244 square feet of built space and 875 square feet of additional air rights according to a PincusCo analysis of city data.
The owner bought the property on July 24, 2003, for $1.95 million. The signatory for Bahram Benaresh was Bahram Benaresh. A forbearance agreement was most recently amended on September 10, 2024, before Dalan bought the note on October 1. To finance the note purchase, Dalan borrowed an undisclosed amount from Northeast Bank. G4 Capital Partners also borrowed from Northeast Bank to provide the original loan in April 2022.

Prior sales and revenue

The 15,244-square-foot property generated revenue of $901,935 or $59 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 5 residential units in Tribeca has 15,244 square feet of built space and 875 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 88 feet deep with a total lot size of 2,188 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca West Historic District. The city-designated market value for the property in 2022 is $3.3 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 $600 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial renovation certificate of occupancy on April 13, 2018. 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 Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has 2.4 times the average sales volume among other neighborhoods with $618.3 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Tribeca has 2.3 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Manhattan. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 12 commercial properties representing 24,400 square feet of the 114,416 square feet. The two identified owners are 177 Franklin Llc and Bahram Benaresh.
There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 114,416 square feet of built space are office buildings, with mixed-use buildings next occupying 35 percent of the space.

The borrower

The PincusCo database currently indicates that Bahram Benaresh owned at least three commercial properties with 51 residential units in New York City with 49,718 square feet and a city-determined market value of $6.8 million. (Market value is typically about 50% of actual value.) The portfolio has $27.6 million in debt, borrowed from Cathay Bank and G4 Capital Partners. Within the portfolio, the bulk, or 69 percent of the 49,718 square feet of built space are walkup properties, with mixed-use properties next occupying 31 percent of the space. They are all located in Manhattan.

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