Feil signs $32M refi with First Republic for office in Flatiron District

Feil Organization through the entity 250 Park, LLC as borrower signed a refi loan with lender First Republic Bank valued at $32 million for the office building (O6) at 242 Park Avenue South in Flatiron District, Manhattan.
The deal closed on September 29, 2022 and was recorded on October 12, 2022. The prior lender was First Republic Bank which held debt that had an original loan amount of $30 million. The property has 111,569 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $286 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 Feil Organization was Jeffrey Feil. The signatory for First Republic Bank was Alan J. Perlowitz.

Prior sales and revenue

The 111,569-square-foot property generated revenue of $9.7 million or $87 per square foot, according to the most recent income and expense figures.

The property

The 242 Park Avenue South parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,350 square feet. The lot is irregular. The zoning is C6-4A 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 $32.1 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 $2,000 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 Flatiron District, the majority, or 72 percent of the 23.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 4.3 times the average sales volume among other neighborhoods with $1.5 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Flatiron District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 32 commercial properties representing 143,678 square feet of the 733,441 square feet. The largest owner is Justin Management, followed by Prime Properties and then Union Square Hospitality Group.
There are no active new building construction projects on this tax block.

The majority, or 87 percent of the 562,057 square feet of built space are office buildings, with retail buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Feil Organization owned at least 38 commercial properties in New York City with 7,635,332 square feet and a city-determined market value of $1.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $216.6 million in debt, with top three lenders as Capital One, Granite Point Mortgage Trust, and Bank of America respectively. Within the portfolio, the bulk, or 48 percent of the 7,635,332 square feet of built space are office properties, with elevator properties next occupying 24 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Queens next at 20 percent of the space.

Direct link to Acris document. link