GFP Real Estate signs $47M refi loan with JPMorgan Chase for office in NoMad

GFP Real Estate through the entity 230 Fifth Avenue Associates, LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $47 million for the office building (O4) at 230 Fifth Avenue in NoMad, Manhattan.
The deal closed on August 18, 2022 and was recorded on September 9, 2022. The prior lender was Principal Life Insurance Company which held debt that had an original loan amount of $50 million. The property has 404,245 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $116 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 JPMorgan Chase was Ursula Flores.

Prior sales and revenue

The 404,245-square-foot property generated revenue of $22.2 million or $55 per square foot, according to the most recent income and expense figures.

The property

The 230 Fifth Avenue parcel has frontage of 62 feet and is 254 feet deep with a total lot size of 19,575 square feet. The lot is irregular. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The property is in the Madison Square North Historic District. The city-designated market value for the property in 2022 is $97.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $1,250 in ECB penalties and $24,650 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 1, 2012. 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 NoMad, the majority, or 63 percent of the 13.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 18 percent of the space. In sales, NoMad has 2 times the average sales volume among other neighborhoods with $658.4 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, NoMad has had very little major development activity relative to other neighborhoods.It had 411,244 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 33 commercial properties representing 507,838 square feet of the 1,922,355 square feet. The largest owner is JPMorgan Asset Management, followed by S.W. Management and then PTS America.
There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 1.9 million square feet of built space are office buildings, with elevator buildings next occupying 25 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 2,875,380 square feet and a city-determined market value of $374.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 94 percent of the 2,875,380 square feet of built space are office properties, with hotel properties next occupying 5 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Bronx next at 2 percent of the space.

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