Global Holdings acquires Mondrian from Moin Development through $155.8M deed-in-lieu

Two years after an Eyal Ofer affiliate filed to foreclose on a $110 million loan at Moin Development’s 190-room Mondrian Park Avenue hotel at 444 Park Avenue in NoMad, Ofer’s Global Holdings Management Group took title through a deed-in-lieu valued at $155.8 million.

Business Wire first disclosed the takeover July 5, but did not disclose a transfer value. In a deed-in-lieu or foreclosure sale to the lender, the transfer price is often simply the total accumulated debt, but it was not known in this instance. The foreclosure case 850223/2021 did not provide a recent accounting of the total debt.

Global Holding through the entity 444 Park Ave South Owner LLC acquired from Moin Development through the entity 444 Park Avenue South Associates LLC the hotel building (H1) at 444 Park Avenue South in Park Avenue South, Manhattan.
The deal closed on July 3, 2023 and was recorded on July 7, 2023. The transfer gives a contract date of September 30, 2022. Global Holdings through Eyal Ofer’s family office Feoh Capital, bought the note on June 8, 2021, then filed to foreclose on the loan in September 2021.

The property has 120,400 square feet of built space according to a PincusCo analysis of city data. The transfer price per built square foot is $1,294 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 Moin Development was David Moinian. The signatory for Global Holdings Management Group was Peter Allen.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Global Holdings Management Group purchased one property in one transactions for a total of $30.7 million and has no record it sold any properties over the past 24 months.
The seller Moin Development had not purchased any other properties and had not sold any properties over the same time period.

The property

The hotel building in Park Avenue South has 120,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 74 feet and is 86 feet deep with a total lot size of 6,419 square feet. The lot is irregular. The zoning is C6-4A 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 $42 million. The most recent loan totaled 0.0 and was provided by Feoh Capital on June 8, 2021.

Violations and lawsuits

The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $110 million commercial foreclosure concerning a loan filed on September 17, 2021, by Feoh Capital LLC against David Moinian and Moin Development. In addition, according to city public data, the property has received $9,900 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 190-unit, 86,960 square-foot R-1 building. The project was submitted by David Moinian with plans filed January 10, 2012 and permitted September 19, 2013.

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 had very little sales volume relative to other neighborhoods with $282.8 million in sales volume in the last two years. For development, Park Avenue South has near average amount of major developments among other neighborhoods and is the 23rd highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 19 commercial properties representing 1,207,500 square feet of the 1,527,688 square feet. The largest owner is Yosi Cohen, followed by Triumph Real Estate Management and then Tribeca Associates.
On the tax block, there were four new building construction projects totaling 460,993 square feet. The largest is a 199-unit, 325,243 square-foot residential (R-2) building submitted by JD Carlisle Development and filed by Evan Stein with plans filed September 11, 2014 and permitted June 21, 2016. The second largest is a 42-unit, 71,717 square-foot residential (R-2) building submitted by Ekstein Development Group and filed by Erik Ekstein with plans filed February 12, 2015 and permitted March 3, 2017.

The majority, or 66 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Global Holdings Management Group owned at least three commercial properties with 460 residential units in New York City with 579,121 square feet and a city-determined market value of $238.6 million. (Market value is typically about 50% of actual value.) The portfolio has $513 million in debt, with top three lenders as Wells Fargo, HSBC Bank, and Citibank respectively. Within the portfolio, the bulk, or 78 percent of the 579,121 square feet of built space are elevator properties, with office properties next occupying 22 percent of the space. They are all located in Manhattan.

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