Forkosh Development signs $65M refi with Webster Bank for dorm, rental in Nolita

Forkosh Development Group through the entity Coral Broome Street LLC as borrower signed a $65 million refi loan with lender Webster Bank for the 117-unit dorm and rental building (H8) at 400 Broome Street in Nolita, Manhattan.
The deal closed on April 28, 2023 and was recorded on May 11, 2023. The prior lender was Citibank which held debt that had an original loan amount of $50 million.
The property has 173,838 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $373 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 Forkosh Development Group was Alex Forkosh. The signatory for Webster Bank was Anthony Viskovich.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Alex Forkosh, head officer and David Podolsky, officer. The business entity is Coral Realty Llc.

The property

The building with 117 residential units in Nolita has 173,838 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 162 feet and is 101 feet deep with a total lot size of 16,438 square feet. The lot is irregular. The zoning is C6-1 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $21.5 million.

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 $3,900 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 neighborhood

In Nolita, The bulk, or 50 percent of the 3.1 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, Nolita has had very little sales volume relative to other neighborhoods with $112.3 million in sales volume in the last two years. For development, Nolita has had very little major development activity relative to other neighborhoods.It had 97,779 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 16 commercial properties representing 67,762 square feet of the 365,818 square feet. The largest owner is Viking Management, followed by Tanaz Eshaghian and then Kano Real Estate Investors.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 365,818 square feet of built space are hotel buildings, with walkup buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that Forkosh Development Group owned at least five commercial properties with 148 residential units in New York City with 256,732 square feet and a city-determined market value of $38.8 million. (Market value is typically about 50% of actual value.) The portfolio has $209 million in debt, with top three lenders as Webster Bank, Sovcombank, and PCCP respectively. Within the portfolio, the bulk, or 44 percent of the 256,732 square feet of built space are hotel properties, with elevator properties next occupying 26 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Brooklyn next at 7 percent of the space.

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