Devli Real Estate signs $25.7M refi loan with East West Bank for hotel in NoMad

Devli Real Estate through the entity Devli Properties, Inc. as borrower signed a refi loan with lender East West Bank through the entity East West Bank valued at $25.7 million for the hotel building (H3) at 42-44 West 29th Street in NoMad, Manhattan.
The deal closed on September 30, 2022 and was recorded on October 19, 2022. The prior lender was East West Bank which held debt that had an original loan amount of $29.4 million. The property has 43,580 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $590 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 Devli Real Estate was Erol Devli. The signatory for East West Bank was Janny Cheung.

The property

The 42-44 West 29th Street parcel has frontage of 40 feet and is 98 feet deep with a total lot size of 3,950 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $16.9 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 two DOB violations and $985 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 4, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In NoMad, the majority, or 63 percent of the 13.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 18 percent of the space. In sales, NoMad has 1.9 times the average sales volume among other neighborhoods with $667.2 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, NoMad has had very little major development activity relative to other neighborhoods.It had 628,160 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 41 commercial properties representing 991,310 square feet of the 1,421,196 square feet. The largest owner is Solil Management, followed by Flag Luxury Group and then Empire Management.
On the tax block, there were three new building construction projects totaling 398,940 square feet. The largest is a 266-unit, 226,649-square-foot R-1 building developed by Richard Murphy with plans filed January 20, 2016 and permitted April 23, 2018. The second largest is a 41-unit, 172,291-square-foot R-2 building developed by Yoram Barel with plans filed September 23, 2016 and permitted September 29, 2021.

The majority, or 68 percent of the 1.4 million square feet of built space are hotel buildings, with office buildings next occupying 18 percent of the space.

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