Global Holdings affiliate acquires $123.9M debt at own Midtown East office building

Eyal Ofer’s Global Holdings Management Group through the entity 410 Park Avenue Associates, L.P. as borrower signed a refi loan with an affiliate of Global Holdings through the entity Feoh Funding LLC valued at $123.9 million for the office building (O4) at 410 Park Avenue in Midtown East, Manhattan.
The deal closed on December 2, 2024 and was recorded on December 9, 2024. The prior lender was HSBC Bank which held debt that had an original loan amount of $140 million.The property has 236,665 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $523 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 property owner Global Holdings Management Group was Peter Allen. The signatory for Feoh Funding was Peter Allen.

The property

The office building in Midtown East has 236,665 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 116 feet deep with a total lot size of 11,715 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 $100.8 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 $1,200 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 Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 3rd highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Midtown East is the 2nd most active neighborhood among other neighborhoods. It had 16.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 23 commercial properties representing 705,611 square feet of the 2,083,024 square feet. The largest owner is Vornado Realty Trust, followed by Boston Properties and then Benenson Capital Partners.
There are no active new building construction projects on this tax block.

The majority, or 86 percent of the 2.1 million square feet of built space are office buildings, with retail buildings next occupying 11 percent of the space.

The borrower

The PincusCo database currently indicates that Global Holdings Management Group owned at least five commercial properties with 583 residential units in New York City with 1,230,421 square feet and a city-determined market value of $454.4 million. (Market value is typically about 50% of actual value.) The portfolio has $759.5 million in debt, with top three lenders as Wells Fargo, Helaba, and HSBC Bank respectively. Within the portfolio, the bulk, or 54 percent of the 1,230,421 square feet of built space are office properties, with elevator properties next occupying 37 percent of the space. They are all located in Manhattan.

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