Gatsby Enterprises signs $12.5M refi with Amalgamated for 35-unit walkup in SoHo

Gatsby Enterprises through the entity Nadco Associates, LLC as borrower signed a refi loan with lender Amalgamated Bank valued at $12.5 million for the 35-unit residential walkup building (C7) at 116 Sixth Avenue in SoHo, Manhattan.
The deal closed on December 9, 2024 and was recorded on December 12, 2024. The prior lender was Capital One which held debt that had an original loan amount of $15 million.The property has 28,042 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $445 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 Gatsby Enterprises was Nader Ohebshalom. The signatory for Amalgamated Bank was Jacob Nimmer.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Nader Ohebshalom, head officer and Lisa Shalom, officer. The business entity is Nadco Associates.

The property

The residential walkup building with 35 residential units in SoHo has 28,042 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 63 feet and is 72 feet deep with a total lot size of 4,735 square feet. The lot is irregular. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the Sullivan-Thompson Historic District. The property has a J-51 exemption that started in 1998 and expires in 2032. The city-designated market value for the property in 2022 is $10 million. The property has 34 rent regulated units according to city tax records from 2023.

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, $2,500 in ECB penalties, four housing violations, one housing violation, and $2,550 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 block

On this tax block, PincusCo has identified the owners of 10 of the 19 commercial properties representing 481,467 square feet of the 549,983 square feet. The largest owner is Trinity Church Wall Street, followed by Vendome Management and then Extended Management.
On the tax block, there were four new building construction projects totaling 320,441 square feet. The largest is a 77-unit, 212,152 square-foot residential (R-2) building submitted by Madigan Development and filed by Louis Madigan with plans filed December 4, 2024 and it has not been permitted yet. The second largest is a 47,648 square-foot business (B) building submitted by Daniel Hollander with plans filed December 27, 2019 and it has not been permitted yet.

The majority, or 62 percent of the 549,983 square feet of built space are office buildings, with walkup buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Gatsby Enterprises owned at least 40 commercial properties with 1,171 residential units in New York City with 837,855 square feet and a city-determined market value of $258 million. (Market value is typically about 50% of actual value.) The portfolio has $219.7 million in debt, with top three lenders as Capital One, Dime Community Bank, and Citibank respectively. Within the portfolio, the bulk, or 50 percent of the 837,855 square feet of built space are elevator properties, with walkup properties next occupying 43 percent of the space. They are all located in Manhattan.

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