Dalan signs $9M modification with BankUnited for three properties in Flatiron District

Dalan Real Estate and partner Mark Goldberg through the entity Aw Wgw Tic LLC (and others) as borrower signed a loan modification with lender BankUnited valued at $9 million for three properties with two residential units including the office building (O5) at 60 West 22nd Street, the retail building (K2) at 62 West 22nd Street and the retail building (K4) at 684 Sixth Avenue, all in the Flatiron District, Manhattan.
The deal closed on October 21, 2024 and was recorded on October 31, 2024. The prior lender was BankUnited which held debt that had an original loan amount of $10.5 million.The three properties have 11,871 square feet of built space and 18,307 square feet of additional air rights for a total buildable of 30,178 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $754 and the price per buildable square foot is $296 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 Dalan Real Estate and Mark Goldberg was Andrew B. Wrublin, Daniel Wrublin, and Mark Goldberg. The signatory for BankUnited was Anthony McCoy.

The property

The mixed-use buildings with 1 residential units in Flatiron District has 11,871 square feet of built space and 18,307 square feet of additional air rights for a total buildable of 30,178 square feet according to a PincusCo analysis of city data. 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 Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received three housing violations and $1,810 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 Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 2.2 times the average sales volume among other neighborhoods with $541.9 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, Flatiron District has 2.7 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 684 Avenue Of The Amer, PincusCo has identified the owners of 10 of the 26 commercial properties representing 466,418 square feet of the 951,579 square feet. The largest owner is Island Capital Group, followed by Janet Yagoda and then Kaufman Organization.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 951,579 square feet of built space are office buildings, with elevator buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that Dalan Real Estate owned at least 43 commercial properties with 1,360 residential units in New York City with 1,350,446 square feet and a city-determined market value of $353.9 million. (Market value is typically about 50% of actual value.) The portfolio has $26.5 million in debt, borrowed from Infinity Capital Partners. Within the portfolio, the bulk, or 69 percent of the 1,350,446 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Brooklyn next at 49 percent of the space.

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