David and Michael Mandelbaum sign $52.5M construction loan for 42-unit conversion in Midtown West

David Mandelbaum and Michael Mandelbaum through the entity 245 West 55th St LLC as borrower signed a renovation construction loan with lender Bank OZK valued at $52.5 million for a conversion of an office building (O3) at 245 West 55th Street in Midtown West, Manhattan, into a 42-unit residential building.
The loan closed on July 16, 2024 and was recorded on July 24, 2024. The prior lender was Mandelbank which held debt that had an original loan amount of $6 million.

On the lot, there is one active major alteration construction project, M00940950, for a 42-unit, 68,206 square-foot residential (R-2) building. The project was submitted by Madigan Development and filed by Louis Madigan with plans filed January 26, 2024 and it has not been permitted yet.
The property has 63,450 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $827 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 owners bought the property on June 6, 2023, for $28.5 million. The signatory for David Mandelbaum and Michael Mandelbaum was Michael Mandelbaum. The signatory for Bank OZK was Juan Gonzalez. Michael Mandelbaum is the son of David Mandelbaum.

Prior sales and revenue

The 63,450-square-foot property generated revenue of $3.2 million or $50 per square foot, according to the most recent income and expense figures.

The property

The office building in Midtown West has 63,450 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,025 square feet. The zoning is C6-4 which allows for up to 10 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 $13 million. The most recent loan totaled $6 million and was provided by Mandelbank GMBH on June 6, 2023.

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 $550 in OATH penalties in the last year.

Development

The neighborhood

In Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 3rd highest sale turnover among other neighborhoods in the city with $2.9 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 29.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 39 percent of the neighborhood’s built space. There were two 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 eight of the 20 commercial properties representing 625,541 square feet of the 723,648 square feet. The largest owner is Assa Properties, followed by East West Realty and then James T. Kim.
There are no active new building construction projects on this tax block.

The majority, or 81 percent of the 723,648 square feet of built space are office buildings, with hotel buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Michael Mandelbaum owned at least one commercial property in New York City with 63,450 square feet and a city-determined market value of $13 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.
The PincusCo database currently indicates that David Mandelbaum owned at least one commercial property in New York City with 63,450 square feet and a city-determined market value of $13 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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