Executive Group signs $33M refi loan with Citibank for hotel in Garment District

Executive Group through the entity Executive Le Soleil New York LLC as borrower signed a refi loan with lender Citibank valued at $33 million for the hotel building (H1) at 38 West 36th Street in Garment District, Manhattan.
The deal closed on October 6, 2022 and was recorded on October 20, 2022. The prior lender was U.S. Bank which held debt that had an original loan amount of $30 million. The property has 91,099 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $362 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 December 8, 2011, for $19.2 million. The signatory for Executive Group was Salim Sayani. The signatory for Citibank was Scott DeTraglia.

The property

The 38 West 36th Street parcel has frontage of 65 feet and is 98 feet deep with a total lot size of 6,430 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $24.7 million.

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 $1,500 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 20, 2015. 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 Garment District, the majority, or 70 percent of the 51.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.6 times the average sales volume among other neighborhoods with $922.9 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 61 commercial properties representing 498,072 square feet of the 1,565,227 square feet. The largest owner is Dong Yin Development (Holdings) Limited, followed by Aju Hotels & Resorts and then Global Securitization Services anonymous entity.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 43 percent of the space.

Direct link to Acris document. link