Farzad Shahery signs $6.8M loan with First Republic for 2 walkups in Harlem

Farzad Shahery through the entity 3750 Broadway Realty Group LLC as borrower signed a loan with lender First Republic Bank valued at $6.8 million for two residential walkup properties with 26 residential units including the 16-unit residential walkup building (C7) at 2 St Nicholas Terrace in Harlem, Manhattan and 10-unit residential walkup building (C4) at 4 St Nicholas Terrace in Harlem, Manhattan.
The deal closed on April 5, 2023 and was recorded on April 12, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $8 million.The two properties have 23,215 square feet of built space and 14,227 square feet of additional air rights for a total buildable of 37,444 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $292 and the price per buildable square foot is $181 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 Farzad Shahery was Farzad Shahery. The new loan is new debt and the prior $8 million was not recorded as paid off.

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 2 St Nicholas Terrace.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Nicolas Loizou, head officer and Carol Rocco, officer. The business entity is 3750 Broadway Realty Group Llc. Out of the two properties, one with a total of 23,215 square feet of built space generated revenue of $213,818 per year.

The property

The residential walkup building with 16 residential units in Harlem has 23,215 square feet of built space and 14,227 square feet of additional air rights for a total buildable of 37,444 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 78 feet deep with a total lot size of 3,133 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.7 million.

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 received two housing violations and $250 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 block

On the tax block of 2 St Nicholas Terrace, PincusCo has identified the owners of 10 of the 20 commercial properties representing 240,076 square feet of the 443,422 square feet. The largest owner is West Harlem Group Assistance, followed by Paul Baxter Lanius Iii and then Moshe Silberstein.
On the tax block, there were seven new building construction projects totaling 90,077 square feet. The largest is a five-unit, 14,140 square-foot residential (R-2) building submitted by Albert Khorsandi with plans filed June 25, 2013 and it has not been permitted yet. The second largest is a five-unit, 14,140 square-foot residential (R-2) building submitted by Albert Khorsandi with plans filed June 25, 2013 and it has not been permitted yet.

The majority, or 59 percent of the 443,422 square feet of built space are walkup buildings, with elevator buildings next occupying 41 percent of the space.

The borrower

The PincusCo database currently indicates that Farzad Shahery owned at least one commercial property with 32 residential units in New York City with 50,706 square feet. The portfolio has $17.1 million in debt, borrowed from New York Community Bank. The portfolio consists of at least a single elevator property. It is located in Manhattan.

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