Efraim and Boris Shamayev sign $14M initial loan with Symetra for Diamond District office building

Efraim Shamayev, Boris Shamayev, and Natanielle Elishaev through the entity 1200 AOA Realty, LLC as borrower signed an initial loan with lender Symetra Life Insurance Company valued at $14 million for the office building (O5) at 1200 Avenue Of The Americas in Midtown West, Manhattan. The property has an alternate address of 1200 Sixth Avenue. The building is at the corner of West 47th Street, on the western edge of the Diamond District.
The deal closed on May 13, 2024 and was recorded on May 24, 2024. The property has 21,600 square feet of built space and 7,395 square feet of additional air rights for a total buildable of 29,000 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $648 and the price per buildable square foot is $482 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 May 24, 2023, for $22.3 million. The signatory for Efraim Shamayev, Boris Shamayev, and Natanielle S. Elishaev was Boris Shamayev and Natanielle S. Elishaev.

Prior sales and revenue

The 21,600-square-foot property generated revenue of $2.5 million or $116 per square foot, according to the most recent income and expense figures.

The property

The office building in Midtown West has 21,600 square feet of built space and 7,395 square feet of additional air rights for a total buildable of 29,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 38 feet deep with a total lot size of 2,900 square feet. The zoning is C6-6 which allows for up to 15 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 $11.7 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 four DOB violations and $930 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 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 $2.6 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 27.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 37 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 21 of the 35 commercial properties representing 1,122,002 square feet of the 1,866,158 square feet. The largest owner is United Overseas Bank, followed by Sunkar Satvaldiyev and then Stawski Partners.
On the tax block, there were two new building construction projects totaling 227,777 square feet. The largest is a 534-unit, 168,897 square-foot hotel/dormitory/shelter (R-1) building submitted by Extell Development and filed by David Rothstein with plans filed November 20, 2020 and permitted December 28, 2022. The second largest is a 58,880 square-foot mercantile (M) building submitted by Michael Mcmenamin with plans filed June 1, 2016 and it has not been permitted yet.

The majority, or 87 percent of the 1.9 million square feet of built space are office buildings, with retail buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Efraim Shamayev owned at least one commercial property in New York City with 21,600 square feet and a city-determined market value of $11.7 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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