EastGold Holdings signs $9.5M refi for retail in Flatiron District

EastGold Holdings through the entity What Cheer II LLC as borrower signed a refi loan with lender JPMorgan Chase, Wells Fargo, and Morgan Stanley valued at $9.5 million for the retail condo at 141 Fifth Avenue in the Flatiron District, Manhattan.
The deal closed on May 5, 2023 and was recorded on May 19, 2023. The prior lender was Series 2013-C10 which held debt that had an original loan amount of $9.5 million.
The property has 4,905 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,936 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 February 17, 2012, for $10 million. The signatory for EastGold Holdings was Michael A. Goldstein.

The property

The retail condo in Flatiron District has 4,905 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 4,905 square feet. The city-designated market value for the property in 2022 is $2.3 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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 13, 2012. 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 the 10th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Flatiron District has 1.8 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 22 commercial properties representing 556,500 square feet of the 953,165 square feet. The largest owner is Rosen Equities, followed by Robert “Toshi” Kar Yuen Chan and then Ramer & Saperstein.
There are no active new building construction projects on this tax block.

The majority, or 91 percent of the 953,165 square feet of built space are office buildings, with mixed-use buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that EastGold Holdings owned at least seven commercial properties with 334 residential units in New York City with 404,618 square feet and a city-determined market value of $64.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 404,618 square feet of built space are elevator properties, with industrial properties next occupying 0 percent of the space. The bulk, or 84 percent of the built space, is in Manhattan, with Bronx next at 16 percent of the space.

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