Forkosh Development signs $55M rehab construction loan with PCCP for in Lenox Hill
305 East 61st Street (Credit - Google)
Forkosh Development Group through the entity Asf 61 LLC as borrower signed a rehab construction loan with lender PCCP through the entity PCCP Credit X Reit-Sub Holdco, LLC valued at $55 million for the redevelopment of the property (D7) at 305 East 61st Street in Lenox Hill, Manhattan.
The deal closed on June 28, 2022 and was recorded on July 8, 2022. 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 $494 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 property
The 305 East 61st Street parcel has frontage of 49 feet and is 125 feet deep with a total lot size of 6,225 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.8 million.The most recent loan totaled $26.5 million and was provided by Madison Realty Capital on December 21, 2021.
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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 two DOB violations, $2,400 in ECB penalties, and $3,400 in OATH penalties in the last year.
The block
On this tax block, PincusCo has identified the owners of 18 of the 33 commercial properties representing 265,753 square feet of the 583,193 square feet. The largest owner is Maddd Equities, followed by Gatsby Enterprises and then Atlantic Development Group. There are three active new building construction projects totaling 120,778 square feet. The largest is a 49,806-square-foot B building developed by James Migliore with plans filed July 3, 2018 and permitted February 20, 2019. The second largest is a 69,647-square-foot B building developed by Jorge Madruga with plans filed September 3, 2015 and permitted December 22, 2017.
The majority, or 40 percent of the 401,867 square feet of built space are residential walkup buildings, with industrial buildings next occupying 26 percent of the space.
Surrounding
Within a 400-foot radius of 305 East 61st Street, Pincusco identified six commercial real estate items of interests occurred over the past 24 months.
Of those six 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 six items, four were loans above $5 million totaling $63.6 million. The most recent of the four was JMC Holdings which borrowed $40.2 million from Granite Point Mortgage Trust secured by the 58,340-square-foot, 19-unit office building (O6) on 306 East 61st Street on May 13, 2022.
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