Electra America signs $15M rehab construction loan with Maxim Credit for hotel in Park Avenue South

Electra America Hospitality Group through the entity Eahg Nomad 2, LLC as borrower signed a rehab construction loan with lender Maxim Credit Group valued at $15 million for the six-unit hotel building (H6) at 131 Madison Avenue in Park Avenue South, Manhattan.
The deal closed on May 16, 2022 and was recorded on September 28, 2022. The prior lender was Maxim Credit Group which held debt that had an original loan amount of $19 million.The property has 98,234 square feet of built space according to PincusCo analysis of city data.
The signatory for Electra America Hospitality Group was Russell D. Urban. The new construction is on top of $19 million already provided by Maxim Credit Group.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Bradley Korman, head officer and Lawrence Korman, officer. The business entity is Eahg Nomad Llc.

The property

The 131 Madison Avenue parcel has frontage of 78 feet and is 113 feet deep with a total lot size of 8,273 square feet. The lot is irregular. The zoning is C5-2 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 $35.1 million.The most recent loan totaled $19 million and was provided by Maxim Credit Group on June 10, 2021.

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 $500 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 $5 million on this tax lot.

The neighborhood

In Park Avenue South, the majority, or 63 percent of the 9.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 20 percent of the space. In sales, Park Avenue South has had very little sales volume relative to other neighborhoods with $228.2 million in sales volume in the last two years. For development, Park Avenue South has near average amount of major developments among other neighborhoods and is the 24th highest in Manhattan. It had 960,317 square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 16 of the 31 commercial properties representing 1,967,713 square feet of the 2,448,317 square feet. The largest owner is Tribeca Associates, followed by JD Carlisle Development and then Moin Development.
On the tax block, there were four new building construction projects totaling 460,993 square feet. The largest is a 199-unit, 325,243-square-foot R-2 building developed by Evan Stein with plans filed September 11, 2014 and permitted June 21, 2016. The second largest is a 42-unit, 71,717-square-foot R-2 building developed by Erik Ekstein with plans filed February 12, 2015 and permitted March 3, 2017.

The majority, or 45 percent of the 2.4 million square feet of built space are elevator buildings, with office buildings next occupying 41 percent of the space.

The borrower

The PincusCo database currently indicates that Electra America Hospitality Group owned at least one commercial property in New York City with 98,234 square feet and a city-determined market value of $35.1 million. (Market value is typically about 50% of actual value.) The portfolio has $19 million in debt, borrowed from Maxim Credit Group. The portfolio consists of at least a single hotel property. It is located in Manhattan.

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