Fairstead signs $247.3M refi with NewPoint for 3,344-unit Harlem complex

Fairstead through the entity HP Savoy Park II Housing Development Fund as borrower signed a refi loan with lender NewPoint Real Estate Capital valued at $247.3 million for seven residential elevator properties with a total of 3,344 units including the 771-unit residential elevator building (D3) at 30 West 141st Street in Harlem, Manhattan, 771-unit residential elevator building (D3) at 15 West 139th Street in Harlem, Manhattan, and 771-unit residential elevator building (D3) at 2300 5th Avenue in Harlem, Manhattan.
The deal closed on December 9, 2022 and was recorded on December 20, 2022. The prior lender was Freddie Mac which held debt that had an original loan amount of $238.9 million. The seven properties have 1,297,226 square feet of built space and 280,716 square feet of additional air rights for a total buildable of 1,578,014 square feet according to PincusCo analysis of city data. The loan price per built square foot is $190 and the price per buildable square foot is $156 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 Fairstead was Jeffrey Goldberg. The signatory for NewPoint Real Estate Capital was Dee Anna Aday.

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 30 West 141st Street.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Shelly Hair, head officer. The business entity is Hp Savoy Park II Hdfc. Out of the seven properties, three with a total of 1,297,226 square feet of built space generated revenue of $13.1 million per year.

The property

The 30 West 141st Street parcel has frontage of 424 feet and is 440 feet deep with a total lot size of 189,025 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $51.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received three DOB violations, $11,049 in ECB penalties, 439 housing violations, $12,024 in OATH penalties, and 12 housing litigations 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 block

There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 1.3 million square feet of built space are elevator buildings, with retail buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Fairstead owned at least 86 commercial properties in New York City with 3,421,569 square feet and a city-determined market value of $302.5 million. (Market value is typically about 50% of actual value.) The portfolio has $367.8 million in debt recorded since July 2019, with top three lenders as Berkshire Residential Investments, Greystone & Co., and Capital One respectively. Within the portfolio, the bulk, or 76 percent of the 3,421,569 square feet of built space are elevator properties, with walkup properties next occupying 23 percent of the space. The bulk, or 52 percent of the built space, is in Bronx, with Manhattan next at 26 percent of the space.

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