George Makkos signs $21.5M refi with T30 Capital in SoHo

George Makkos through the entity 67-65 Greene Street, LLC as borrower signed a refi loan with lender T30 Capital through the entity Forthill Makkos Holders, LLC valued at $21.5 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.
This is the first loan from T30 Capital in New York City that PincusCo has records for.
The deal closed on May 25, 2023 and was recorded on June 2, 2023. The prior lender was SKW Funding which held debt that had an original loan amount of $15.2 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 $1,008 and the price per buildable square foot is $839 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 T30 Capital was David Schwartz.

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 mixed-use building with 4 residential units in SoHo has 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 parcel has frontage of 25 feet and is 104 feet deep with a total lot size of 2,625 square feet. 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.

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 $50 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 2.1 times the average sales volume among other neighborhoods with $747.9 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 383,038 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 67 Greene Street, PincusCo has identified the owners of six of the 16 commercial properties representing 180,049 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 two commercial properties with 10 residential units in New York City with 19,499 square feet and a city-determined market value of $9.8 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from Dime Community Bank. Within the portfolio, the bulk, or 69 percent of the 19,499 square feet of built space are office properties, with mixed-use properties next occupying 31 percent of the space. They are all located in Manhattan.

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