Forkosh Development signs $26.5M loan with Madison Realty Capital for 14-unit elevator building in Lenox Hill

Forkosh Development Group through the entity Asf 61 LLC as borrower signed an acquisition loan with lender Madison Realty Capital through the entity 305 E 61st Street 1 LLC valued at $26.5 million for the 14-unit property at 305 East 61st Street in Lenox Hill, Manhattan.
The deal closed on December 21, 2021 and was recorded on January 26, 2022. The prior lender was Raith Capital Partners which held debt that had an original loan amount of $33 million.
The property has 66,237 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $400 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 20, 2021, for $35 million.
The signatory for Forkosh Development was Alexander Forkosh. The signatory for Madison Realty Capital was Brian Shatz.
Over the past five years, there have been 12 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 12 renovation/alteration projects (A2) applied for with a total estimated value of $1.7 million. One of the projects were to change the building from a B-2 to a R-2 and change the number of residential units from 0 to 14 and were permitted on July 27, 2017.
Brian Shatz is the co-founder of Madison Realty Capital.
On the tax block, the majority, or 35 percent of the 468,104 square feet of built space are residential walkup buildings, with industrial buildings next occupying 23 percent of the space.
There was a condominium project filed with the address 305 East 61st Street and the name New York Arts Condominium (the) on June 30, 2016. The principals of the sponsor, 305 East 61st Street Group Llc, were Mitchell Marks and Jason Carter. link
Within a 400-foot radius of 305 East 61st Street, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, two were sales above $5 million totaling $20.4 million. The most recent of the two was HUBB NYC which bought the 21,340-square-foot, 56-unit rental (C5) on 322 East 61st Street for $14.4 million from AIR Communities on November 19, 2021.
Of those four items, two were loans above $5 million totaling $15.5 million. The most recent of the two was Townhouse Property Group which borrowed $5.5 million from Dime Community Bank secured by the 4,000-square-foot, five-unit mixed-use building (S4) on 1156 2nd Avenue and two other properties on June 17, 2021.

Direct link to Acris document. link