G4 Capital signs $32.2M acquisition loan with Sabal for office in West Village

G4 Capital Partners through the entity 76 8th Ave LLC as borrower signed an acquisition loan with lender Sabal Investment Holdings through the entity Ssof II 76 8th Ave LLC valued at $32.2 million for the newly built office building (O6) at 74 8th Avenue in West Village, Manhattan.
The deal closed on April 30, 2024 and was recorded on May 3, 2024. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $39.6 million.The property has 34,364 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $937 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 March 12, 2019, for $18 million. The signatory for G4 Capital Partners was Jason Behfarin. The signatory for Sabal Investment Holdings was Drake Ayres. G4 Capital Partners, as original lender, acquired this building from its borrower in a transaction valued at $44.1 million.

The property

The office building in West Village has 34,364 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 46 feet and is 80 feet deep with a total lot size of 3,607 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing.

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 one DOB violation and $1,300 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 29,671 square-foot B building. The project was submitted by Chun Lee with plans filed February 12, 2015 and permitted September 11, 2019.

The neighborhood

In West Village, The bulk, or 32 percent of the 10.2 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, West Village has the 9th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, West Village has near average amount of major developments among other neighborhoods and is the 26th highest in Manhattan. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 15 of the 31 commercial properties representing 334,693 square feet of the 501,344 square feet. The largest owner is Scharfman Organization, followed by S.W. Management and then Roger Dubois.
On the tax block, there was one new building construction project filed totaling 29,671 square feet. It is a 29,671 square-foot business (B) building submitted by Chun Lee with plans filed February 12, 2015 and permitted May 10, 2019.

The majority, or 45 percent of the 501,344 square feet of built space are elevator buildings, with walkup buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that G4 Capital Partners owned at least one commercial property in New York City with 29,671 square feet and a city-determined market value of $2.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.