Ground lessor of SoHo office, retail building signs $54M refi with Apple Bank

Richard S. Berry, the fee owner and ground lessor, through the entity Kerria 2 Associates LLC as borrower signed a refi loan with lender Apple Bank valued at $54 million for the office building (O6) at 594 Broadway in SoHo, Manhattan.
The building is on a long-term lease with the ground lessee, the Gural family’s GFP Real Estate, signed in 1988.
The deal closed on March 27, 2024 and was recorded on April 18, 2024. The prior lender was Capital One which held debt that had an original loan amount of $60 million.

The property has 231,840 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $232 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 Richard S. Berry was Richard S. Berry. The signatory for Apple Bank was Cynthia Wang.

The property

The office building in SoHo has 231,840 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 84 feet and is 199 feet deep with a total lot size of 17,425 square feet. The lot is irregular. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $52.7 million. The most recent loan totaled 0.0 and was provided by Fortress Investment Group on August 15, 2023.

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 $1,635 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 23, 2016. On the lot, there is one active major alteration construction project for a one-unit, 199,172 square-foot B building. The project was submitted by James Coffey with plans filed July 23, 2019 and it has not been permitted yet.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 1.9 times the average sales volume among other neighborhoods with $541.5 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 219,732 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the seven commercial properties representing 713,597 square feet of the 1,063,967 square feet. The largest owner is Zuberry Development, followed by Olmstead Properties and then Madison Capital.
There are no active new building construction projects on this tax block.

All properties are office.

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