Elizabeth Foundation for the Arts signs $6.5M refi for commercial condo units in Garment District

Elizabeth Foundation For The Arts through the entity The Elizabeth Foundation For The Arts as borrower signed a refi loan with lender Nonprofit Finance Fund through the entity Nonprofit Finance Fund valued at $6.5 million for two office condominium units, and one retail unit, at 323 West 39th Street in Garment District, Manhattan.
The deal closed on September 29, 2025 and was recorded on October 8, 2025. The prior lender was Hirshmark Capital which held debt that had an original loan amount of $6 million.The three properties have 57,382 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $112 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 Elizabeth Foundation For The Arts was George Scheer. The signatory for Nonprofit Finance Fund was David Streim .

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 323 West 39th Street.

The property

The office condo in Garment District has 57,382 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 46,795 square feet. The city-designated market value for the property in 2022 is $8.7 million. Hirshmark Capital on March 25, 2024 bought a loan with an original principal of 6000000.0 from Hirshmark Capital signed by George Scheer, secured by 323 West 39th Street, when owned by Elizabeth Foundation For The Arts.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Garment District is the 6th most active neighborhood among other neighborhoods. It had 11.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space. There were six pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 323 West 39th Street, PincusCo has identified the owners of 16 of the 31 commercial properties representing 1,159,669 square feet of the 1,572,885 square feet. The largest owner is Mack Real Estate Group, followed by Gehr Group and then Mcsam Hotel Group.
On the tax block, there was one new building construction project filed totaling 19,255 square feet. It is a 25-unit, 19,255 square-foot residential (R-2) building submitted by Man Hei Li with plans filed May 15, 2019 and permitted May 25, 2022.

The majority, or 71 percent of the 1.6 million square feet of built space are hotel buildings, with office buildings next occupying 19 percent of the space.

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