Goodman Capital gives $23M loan for NoMad office building exiting bankruptcy

Michael Sklar through the entity Ninety-Five Madison Company, L.P. as signatory for the borrower signed a initial loan with lender Goodman Capital through the entity Madison Avenue Servicing LLC valued at $23 million for the office building (O6) at 89 Madison Avenue in NoMad, Manhattan. Rita Sklar and the Sklar family has owned the building for decades.
Rita Sklar as an owner placed the property in bankruptcy in 2021, 21-10529 (dsj). The Chapter 11 plan was confirmed on December 21, 2023.

Goodman Capital borrowed an undisclosed amount from Northeast Bank through a participation loan, as part of the financing.
The loan closed on February 14, 2024 and was recorded on February 22, 2024. The property has 146,161 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $157 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 Rita Sklar and Michael Sklar was Michael Sklar. The signatory for Goodman Capital was Eric Goodman.

The property

The office building in NoMad has 146,161 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 98 feet and is 100 feet deep with a total lot size of 9,875 square feet. The zoning is C5-2 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 property is in the Individual Landmark. The city-designated market value for the property in 2022 is $34 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 one DOB violation and $1,850 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 NoMad, The majority, or 66 percent of the 12.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has had very little sales volume relative to other neighborhoods with $175.3 million in sales volume in the last two years. For development, NoMad has 2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 16 commercial properties representing 1,006,641 square feet of the 1,764,078 square feet. The largest owner is Phipps Houses, followed by Pan Am Equities and then Mayer Chemtob.
On the tax block, there was one new building construction project filed totaling 169,210 square feet. It is a 123-unit, 169,210 square-foot residential (R-2) building submitted by Rockefeller Group and filed by John Pierce with plans filed January 30, 2018 and permitted June 6, 2018.

The majority, or 58 percent of the 1.8 million square feet of built space are office buildings, with elevator buildings next occupying 27 percent of the space.

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