Four Winds Real Estate signs $24.3M refi with Arbor for four properties in Lower East Side
Four Winds Real Estate through the entity 110-114 Rivington House Partners LLC as borrower signed a refi loan with lender Arbor Realty Trust through the entity Arbor Agency Lending, LLC valued at $24.3 million for four properties with 53 residential units including the 23-unit residential elevator building (D6) at 114 Ridge Street in Lower East Side, Manhattan, 20-unit residential walkup building (C7) at 106 Ridge Street in Lower East Side, Manhattan, and 10-unit property at 114 Ridge Street in Lower East Side, Manhattan.
The deal closed on March 8, 2024 and was recorded on March 13, 2024. The prior lender was Acres Capital which held debt that had an original loan amount of $22.5 million.
The four properties have 56,262 square feet of built space and 2,000 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $431 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 Four Winds Real Estate was Joshua Landau. The signatory for Arbor Realty Trust was Kenneth Dowling.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 106 Ridge Street.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Joshua Landau, head officer and Adam Reisman, officer. The business entity is 198 Rivington House Partners Llc. The four properties with a total of 56,262 square feet of built space generated revenue of $2.8 million per year or $49 per square foot.
The property
The residential walkup building with 20 residential units in Lower East Side has 56,262 square feet of built space and 2,000 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 90 feet and is 50 feet deep with a total lot size of 4,512 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.5 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations, 19 housing violations, and $2,500 in OATH penalties in the last year.
Development
For the tax lot buildings, two out of the four buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
The block
On the tax block of 106 Ridge Street, PincusCo has identified the owners of 17 of the 33 commercial properties representing 246,729 square feet of the 460,491 square feet. The largest owner is William Gottlieb Real Estate, followed by Value Development Partners and then Stonehenge NYC.
On the tax block, there were two new building construction projects totaling 55,744 square feet. The largest is a 37-unit, 39,704 square-foot residential (R-2) building submitted by Icon Realty Management and filed by Terrence Lowenberg with plans filed April 9, 2014 and permitted January 13, 2016. The second largest is a 12-unit, 16,040 square-foot residential (R-2) building submitted by Michael Bauer with plans filed July 2, 2019 and permitted November 18, 2020.
The majority, or 49 percent of the 460,491 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.
The borrower
The PincusCo database currently indicates that Four Winds Real Estate owned at least six commercial properties with 172 residential units in New York City with 142,517 square feet and a city-determined market value of $32 million. (Market value is typically about 50% of actual value.) The portfolio has $52 million in debt, with top three lenders as Resource America, Ready Capital, and UBS respectively. Within the portfolio, the bulk, or 54 percent of the 142,517 square feet of built space are elevator properties, with walkup properties next occupying 45 percent of the space. They are all located in Manhattan.
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