George Makkos signs $14M refi with Preferred Bank for two mixed-use properties in SoHo

George Makkos through the entity 67-65 Greene Street, LLC as borrower signed a refi loan with lender Preferred Bank valued at $14 million for two mixed-use properties with seven residential units including the four-unit mixed-use building (S4) at 67 Greene Street in SoHo, Manhattan and three-unit mixed-use building (S9) at 65 Greene Street in SoHo, Manhattan.
The deal closed on May 17, 2024 and was recorded on May 21, 2024. The prior lender was T30 Capital which held debt that had an original loan amount of $21.5 million.
The two properties have 21,321 square feet of built space and 4,309 square feet of additional air rights for a total buildable of 25,620 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $656 and the price per buildable square foot is $546 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 George Makkos was George Makkos. The signatory for Preferred Bank was Sylvia Tseng.

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 67 Greene Street.

Prior sales and revenue

Out of the two properties, one with a total of 21,321 square feet of built space generated revenue of $475,691 per year.

The property

The zoning is M1-5/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $9.8 million. The most recent loan totaled $21.5 million and was provided by T30 Capital on May 25, 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 $100 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 neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 1.9 times the average sales volume among other neighborhoods with $519.6 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 216,573 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block of 67 Greene Street, PincusCo has identified the owners of nine of the 16 commercial properties representing 212,593 square feet of the 328,194 square feet. The largest owner is Zar Property Ny, followed by Kub Capital and then Jsre Acquisitions.
There are no active new building construction projects on this tax block.

The majority, or 46 percent of the 328,194 square feet of built space are office buildings, with elevator buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that George Makkos owned at least four commercial properties with 17 residential units in New York City with 40,820 square feet and a city-determined market value of $27.4 million. (Market value is typically about 50% of actual value.) The portfolio has $31.5 million in debt, borrowed from T30 Capital and Dime Community Bank. Within the portfolio, the bulk, or 67 percent of the 40,820 square feet of built space are mixed-use properties, with office properties next occupying 33 percent of the space. They are all located in Manhattan.

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