GFP, Steinberg & Pokoik sign $28M refi for office in Garment District

GFP Real Estate and Steinberg & Pokoik Management through the entity Realties 1430 as borrower signed a refi loan with lender Apple Bank for Savings valued at $28 million for the office building (O4) at 1430 Broadway in Garment District, Manhattan.
The deal closed on March 30, 2023 and was recorded on April 18, 2023. The prior lender was Principal Life Insurance Company which held debt that had an original loan amount of $35 million. The property has 364,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $76 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 and Steinberg & Pokoik Management was Michael L. Steinberg and Jeffrey Gural. The signatory for Apple Bank for Savings was Cynthia Wang.

Prior sales and revenue

The 364,000-square-foot property generated revenue of $19.1 million or $52 per square foot, according to the most recent income and expense figures.

The property

The office building in Garment District has 364,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 76 feet and is 216 feet deep with a total lot size of 16,647 square feet. The zoning is C5-3 which allows for up to 15 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 $87.3 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 $28,650 in ECB penalties and $28,725 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 Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 2.5 times the average sales volume among other neighborhoods with $886.6 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 3.2 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the eight commercial properties representing 1,752,757 square feet of the 2,653,617 square feet. The largest owner is Swig Company, followed by Princeton International Properties and then Isaac Chetrit.

The majority, or 95 percent of the 2.7 million square feet of built space are office buildings, with hotel buildings next occupying 5 percent of the space.

The borrower

The PincusCo database currently indicates that GFP Real Estate owned at least 13 commercial properties with eight residential units in New York City with 3,540,377 square feet. Within the portfolio, the bulk, or 97 percent of the 3,540,377 square feet of built space are office properties, with industrial properties next occupying 2 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Brooklyn next at 3 percent of the space.

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