Five Points signs $109.8M senior construction loan with Madison Realty for supertall in NoMad, part of $180M package

Five Points Development signed a senior construction and land loan totaling $109.8 million with Madison Realty Capital for a residential development in NoMad at 262 Fifth Avenue, which is part of a $180 million package that includes $50 million in mezzanine debt from Cottonwood Group and an additional $20 million in mezzanine debt from Madison Realty Capital, The Real Deal reported.

On the lot, there is one active new building construction project for a residential building under job number 122874906. The project was submitted by Yoram Barel with plans filed September 23, 2016 and permitted September 29, 2021. On the tax lot, the most recent condominium plan was filed by FIVE POINTS JV L.P. to create 36 residential units and 1 commercial units in a building at 262 Fifth Avenue in NoMad, Manhattan, called 262 Fifth Condominium, according to an November 3, 2017 submission to the New York State Attorney General. The principal of the sponsor, FIVE POINTS JV L.P., was Boris Kuzinez.

According to property records, Five Points Development through the entity Five Points 262 Project LLC as borrower signed a new construction loan with lender Madison Realty Capital through the entity 262 Fifth Ave 1 LLC valued at $109.8 million for the development building (V1) at 262 Fifth Avenue in NoMad, Manhattan.
The deal closed on October 31, 2023 and was recorded on November 13, 2023. The prior lender was Maxim Capital Group which held debt that had an original loan amount of $20 million.

The property has zero square feet of built space and 49,420 square feet of additional air rights for a total buildable of 49,420 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $2,220 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 February 11, 2015, for $17.4 million. The signatory for Five Points Development was Boris Kuzinez. The signatory for Madison Realty Capital was Brian Shatz.

The property

The parcel has frontage of 49 feet and is 100 feet deep with a total lot size of 4,942 square feet. The zoning is C5-2 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 $4.3 million. The most recent loan totaled $20 million and was provided by Maxim Credit Group on November 20, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $23,125 in ECB penalties and $25,005 in OATH penalties in the last year.

The neighborhood

In NoMad, The majority, or 66 percent of the 12.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has near average sales volume among other neighborhoods with $377.8 million in sales volume in the last two years and is the 31st highest in Manhattan. For development, NoMad has near average amount of major developments among other neighborhoods and is the 23rd highest in Manhattan. It had 985,921 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 36 commercial properties representing 632,303 square feet of the 976,387 square feet. The largest owner is Solil Management, followed by Sharma Development Group and then Loloi Rugs.
On the tax block, there were two new building construction projects totaling 398,940 square feet. The largest is a 266-unit, 226,649 square-foot hotel/dormitory/shelter (R-1) building submitted by Flag Luxury Group and filed by Richard Murphy with plans filed January 20, 2016 and permitted April 23, 2018. The second largest is a 41-unit, 172,291 square-foot residential (R-2) building submitted by Yoram Barel with plans filed September 23, 2016 and permitted September 29, 2021.

The majority, or 56 percent of the 976,387 square feet of built space are hotel buildings, with office buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Five Points Development owned at least three commercial properties in New York City with 0.0 square feet and a city-determined market value of $4.3 million. (Market value is typically about 50% of actual value.) The portfolio has $20 million in debt, borrowed from Maxim Credit Group. Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are development properties, with V1 properties next occupying 0 percent of the space.

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