GFP Real Estate signs $16M refi loan for two properties in Park Avenue South
GFP Real Estate through the entity 171 Madison De LLC as borrower signed a refi loan with lender Apple Bank for Savings valued at $16 million for two properties including the office building (O6) at 169 Madison Avenue in Park Avenue South, Manhattan and eight-unit residential walkup building (C7) at 175 Madison Avenue in Park Avenue South, Manhattan.
The deal closed on March 6, 2023 and was recorded on March 10, 2023. The prior lender was Comm 2013-CCRE7 which held debt that had an original loan amount of $20 million.
The two properties have 123,223 square feet of built space and 14,756 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $129 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 GFP Real Estate was Jeffrey Gural. The signatory for Apple Bank for Savings was Cynthia Wang.
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 169 Madison Avenue.
Prior sales and revenue
Out of the two properties, one with a total of 123,223 square feet of built space generated revenue of $6.6 million per year.
The property
The 169 Madison Avenue parcel has frontage of 74 feet and is 100 feet deep with a total lot size of 7,400 square feet. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $25.4 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $2,600 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 $5 million on this tax lot.
The neighborhood
In Park Avenue South, the majority, or 67 percent of the 9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 16 percent of the space. In sales, Park Avenue South has near average sales volume among other neighborhoods with $305.2 million in sales volume in the last two years and is the 29th highest in Manhattan. For development, Park Avenue South has near average amount of major developments among other neighborhoods and is the 25th 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 12 percent of the neighborhood’s built space.
The block
On the tax block of 169 Madison Avenue, PincusCo has identified the owners of five of the 26 commercial properties representing 672,901 square feet of the 2,065,922 square feet. The largest owner is Zar Property NY, followed by Pi Capital Partners and then PGIM.
On the tax block, there was one new building construction project filed totaling 67,003 square feet. It is a 82-unit, 67,003-square-foot R-2 building developed by James Pi with plans filed July 26, 2019 and it has not been permitted yet.
The majority, or 74 percent of the 1.9 million square feet of built space are office buildings, with elevator buildings next occupying 18 percent of the space.
The borrower
The PincusCo database currently indicates that GFP Real Estate owned at least 13 commercial properties in New York City with 4,210,037 square feet and a city-determined market value of $586 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 79 percent of the 4,210,037 square feet of built space are office properties, with O4 properties next occupying 19 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Brooklyn next at 2 percent of the space.
Direct link to Acris document. link