Gatsby Enterprises signs $7.2M refi for 38-unit rental in SoHo

Gatsby Enterprises through the entity Prince Street Holdings 1 LLC as borrower signed a refi loan with lender First Republic Bank valued at $7.2 million for the 38-unit residential elevator building (D9) at 202 6th Avenue in SoHo, Manhattan.
The deal closed on February 8, 2023 and was recorded on April 24, 2023. The prior lender was Capital One which held debt that had an original loan amount of $8 million.
The property has 21,740 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $333 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 First Republic Bank was Alan J. Perlowitz.

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 Prince Street Holdings 1 Llc. The 21,740-square-foot property generated revenue of $1.2 million or $54 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 38 residential units in SoHo has 21,740 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 53 feet and is 100 feet deep with a total lot size of 5,299 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Sullivan-Thompson Historic District. The city-designated market value for the property in 2022 is $7.1 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 one DOB violation, $16,562 in ECB penalties, and $24,067 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 21,740 square-foot B building. The project was submitted by Isaac Shalom with plans filed February 1, 2019 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 62,122 square feet of the 228,095 square feet. The largest owner is Roger A. Abi-Zeid, followed by Page Management and then John Paravalos.
On the tax block, there was one new building construction project filed totaling 69,282 square feet. It is a 25-unit, 69,282 square-foot residential (R-2) building submitted by Quinlan Development Group and filed by Timothy Quinlan with plans filed September 28, 2012 and permitted January 14, 2014.

The majority, or 41 percent of the 228,095 square feet of built space are elevator buildings, with walkup buildings next occupying 35 percent of the space.

The borrower

The PincusCo database currently indicates that Gatsby Enterprises owned at least 36 commercial properties with 1,021 residential units in New York City with 713,990 square feet. The portfolio has $121.1 million in debt, with top three lenders as Capital One, Dime Community Bank, and Flushing Bank respectively. Within the portfolio, the bulk, or 48 percent of the 713,990 square feet of built space are walkup properties, with elevator properties next occupying 43 percent of the space. They are all located in Manhattan.

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