Global Holdings signs $90M construction loan for 123-unit tower in Lincoln Square

Global Holdings Management Group through the entity Global 1845 Broadway LLC as borrower signed a new construction loan with lender Wells Fargo valued at $90 million for the office building at 1841-1845 Broadway in Lincoln Square, Manhattan.
The deal closed on May 18, 2022 and was recorded on June 9, 2022. The prior lender was Wells Fargo which held debt that had an original loan amount of $75 million, and the $75 million loan remains in place. The property has 129,090 square feet of built space and 44,886 square feet of additional air rights for a total buildable of 173,980 square feet according to PincusCo analysis of city data. The loan price per built square foot is $697 and the price per buildable square foot is $517 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 Global Holdings Management Group was Peter Allen. Global Holdings still has a $75 million land loan.

The property

The 1841-1845 Broadway parcel has frontage of 116 feet and is 173 feet deep with a total lot size of 17,398 square feet. The lot is irregular. The zoning is C4-7 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 $67.9 million.The most recent loan totaled $75 million and was provided by Wells Fargo on September 14, 2021.

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 five DOB violations, $5,000 in ECB penalties, and $6,400 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 123-unit, 173,561-square-foot R-2 building. The project was developed by Global Holdings with plans filed December 6, 2018 and permitted March 26, 2021.

The neighborhood

In Lincoln Square, the majority, or 67 percent of the 30.8 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Lincoln Square has near average sales volume among other neighborhoods with $255.9 million in sales volume in the last two years and is the 30th highest in Manhattan. For development, Lincoln Square has had very little major development activity relative to other neighborhoods.It had 312,706 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 178 commercial properties representing 205,601 square feet of the 1,112,212 square feet. The two identified owners are Global Holdings Management Group and Extell Development. There is one active new building construction project totaling 173,561 square feet. It is a 123-unit, 173,561-square-foot R-2 building developed by Global Holdings with plans filed December 6, 2018 and permitted March 26, 2021.

The majority, or 44 percent of the 918,711 square feet of built space are residential elevator buildings, with office buildings next occupying 39 percent of the space.

The borrower

The PincusCo database currently indicates that Global Holdings Management Group owned at least two commercial properties with 536,645 square feet and a city-determined market value of $204.8 million. (Market value is typically about 50% of actual value.) The portfolio has $400 million in debt, borrowed from Wells Fargo and HSBC Bank. Within the portfolio, the bulk, or 76 percent of the 536,645 square feet of built space are elevator properties, with office properties next occupying 24 percent of the space. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 1841-1845 Broadway, Pincusco identified 18 commercial real estate items of interests occurred over the past 24 months.
Of those 18 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on September 3, 2021 for the $13.3 million renovation of 68,653-square-foot G building with zero residential units at 17 West 60th Street.
Of those 18 items, 14 were sales above $5 million totaling $292.3 million. The most recent of the 14 was 15cpw6d LLC which bought one condo unit in the 231-unit mixed-use building (RM) on 15 Central Park West for $20 million from Gwi Enterprise Ltd. on May 24, 2022.
Of those 18 items, three were loans above $5 million totaling $184.7 million. The most recent of the three was Extell Development which borrowed $44 million from Ladder Capital secured by the 76,511-square-foot, six-unit industrial (W4) on 17 West 60th Street on November 3, 2021.

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