Dermot signs $116.5M loan with Helaba for 147-unit rental in Lenox Hill

Dermot Company through the entity 220 East 72nd Street REIT, LLC as borrower signed a loan with lender Helaba through the entity Landesbank Hessen-Thuringen Girozentrale valued at $116.5 million for the 147-unit property at 220 East 72nd Street in Lenox Hill, Manhattan.
The deal closed on June 30, 2022 and was recorded on July 22, 2022. The property has 156,200 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $688 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 July 9, 2019, for $159.5 million.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Andrew Levison, head officer and Luis Perez, site manager. The business entities are Dermot Realty Management Co and 220 East 72nd Street Reit Llc.

The property

The 220 East 72nd Street parcel has a total lot size of 156,200 square feet. The city-designated market value for the property in 2022 is $47.1 million.

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 one DOB violation 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 block

On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 173,816 square feet of the 734,228 square feet. The largest owner is Charles Alpert (271), followed by Premier Equities and then Chetrit Group.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 692,949 square feet of built space are elevator buildings, with specialty buildings next occupying 20 percent of the space.

Surrounding

Within a 400-foot radius of 220 East 72nd Street, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, one was in new building development. It was a new building permit application filed on January 24, 2022 for a 120,449-square-foot R-2 building with 134 residential units at 242 East 71st Street.
Of those eight items, one was for major renovation including a certificate of occupancy change. It was a permit issued on November 30, 2020 for the $485,000 renovation of 361,739-square-foot R-2 building with 154 residential units at 220 East 72nd Street.
One of those eight items was a sale which Premier Equities bought two condo units in the 35-unit mixed-use building (RM) on 1231 3rd Avenue and one other property for $43.2 million from the Chetrit Group on January 6, 2022.
Of those eight items, five were loans above $5 million totaling $266.1 million. The most recent of the five was 230 East 73rd Cooperative which borrowed $85 million from First Republic Bank secured by the 89,281-square-foot, 92-unit co-op (D4) on 230 East 73rd Street on May 25, 2022.

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