FS Investments buys $32M note secured by 3 Harlem rentals

FS Investments through the entity FS Creit Finance GS-1 LLC bought a note with an original principal of $32 million from M&T Bank secured by Michael Aryeh, Eric Berliner, Scott Solomon, and Robert Fine’s 55-unit residential elevator building (D7) at 25 St Nicholas Terrace, 53-unit residential elevator building (D1) at 35 St Nicholas Terrace, and 56-unit residential walkup building (C4) at 400 West 128th Street in Harlem, Manhattan. Michael Aryeh, Eric Berliner, Scott Solomon and Robert Fine signed for the borrower entities in 2019.
The deal closed on March 31, 2025 and was recorded on April 7, 2025. The prior lender was M&T Bank which held debt that had an original loan amount of $32 million.

The three properties have 148,629 square feet of built space and 2,997 square feet of additional air rights according to a PincusCo analysis of city data.
The signatory for Michael Aryeh , Eric Berliner , Scott Solomon , and Robert Fine was Michael Aryeh, Eric Berliner, Scott Solomon, and Robert Fine. People’s United Bank originated the $32 million loan in June 2019.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Aryeh, head officer and Brian Newman, site manager. The business entity is Aryeh Family Holdings Llc. The three properties with a total of 148,629 square feet of built space generated revenue of $2.8 million per year or $19 per square foot.

The property

The residential elevator building with 55 residential units in Harlem has 148,629 square feet of built space and 2,997 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 99 feet and is 110 feet deep with a total lot size of 10,991 square feet. 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 $4.3 million. The property has 29 rent regulated units according to city tax records from 2023.

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, $1,250 in ECB penalties, 70 housing violations, $3,480 in OATH penalties, and one housing litigation 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 block

On the tax block of 25 St Nicholas Terrace, PincusCo has identified the owners of six of the 17 commercial properties representing 153,455 square feet of the 489,403 square feet. The largest owner is New York City Department Of Housing Preservation And Development, followed by Verizon and then Jonathan Feigenbaum.
There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 489,403 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that Michael Aryeh owned at least 18 commercial properties with 582 residential units in New York City with 470,924 square feet and a city-determined market value of $55.8 million. (Market value is typically about 50% of actual value.) The portfolio has $140.7 million in debt, with top three lenders as JPMorgan Chase, Signature Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 60 percent of the 470,924 square feet of built space are walkup properties, with elevator properties next occupying 40 percent of the space. They are all located in Manhattan.
The PincusCo database currently indicates that Eric Berliner owned at least three commercial properties with four residential units in New York City with 16,410 square feet and a city-determined market value of $12.6 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are mixed-use properties. They are all located in Manhattan.

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