Edison Properties buys $5M note secured by its own Hell’s Kitchen garage

Edison Properties through the entity Edison Garage Lender LLC bought a note with an original principal of $5 million from Apple Bank for Savings secured by Edison Properties’s industrial building (G1) at 257 West 47th Street in Hell’s Kitchen, Manhattan.
The deal closed on January 31, 2024 and was recorded on February 6, 2024. The prior lender was Apple Bank for Savings which held debt that had an original loan amount of $5 million.
The property has 20,072 square feet of built space and 31,671 square feet of additional air rights for a total buildable of 51,750 square feet according to a PincusCo analysis of city data.

The property

The industrial building in Hell’s Kitchen has 20,072 square feet of built space and 31,671 square feet of additional air rights for a total buildable of 51,750 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 108 feet deep with a total lot size of 5,175 square feet. The lot is irregular. The zoning is C6-5 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 $6.2 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 received $1,805 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 Hell’s Kitchen, The bulk, or 39 percent of the 40.6 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 3.1 times the average sales volume among other neighborhoods with $956.5 million in sales volume in the last two years and is the 12th highest in Manhattan. For development, Hell’s Kitchen is the 7th most active neighborhood among other neighborhoods. It had 5.3 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. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 11 commercial properties representing 584,711 square feet of the 720,708 square feet. The largest owner is Prasit Realty Corp., followed by Mehran Kohansieh and then Bentallgreenoak.
There are no active new building construction projects on this tax block.

The majority, or 64 percent of the 720,708 square feet of built space are elevator buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Edison Properties owned at least 28 commercial properties with 1,081 residential units in New York City with 1,496,103 square feet and a city-determined market value of $386.6 million. (Market value is typically about 50% of actual value.) The portfolio has $65 million in debt, borrowed from Greystone & Co.. Within the portfolio, the bulk, or 69 percent of the 1,496,103 square feet of built space are elevator properties, with office properties next occupying 24 percent of the space. They are all located in Manhattan.

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