Grubb Properties signs $67.5M refi with Maxim Capital for dev parcel in FiDi

Grubb Properties through the entity Carlisle New York Apartments, LLC as borrower signed a refi loan with lender Maxim Capital Group through the entity Maxim Credit Group, LLC valued at $67.5 million for the development site (V1) at 111 Washington Street in Financial District, Manhattan.
On the lot, there is one active new building construction project for a 388-unit, 340,376 square-foot R-2 building. The project was submitted by Richard Ohebshalom with plans filed December 11, 2014 and permitted December 7, 2015.
The deal closed on May 8, 2024 and was recorded on May 22, 2024. The prior lender was Naftali Credit Partners which held debt that had an original loan amount of $45.1 million.

The owner bought the property on September 10, 2021, for $89.2 million. The signatory for Grubb Properties was Robert Miller. The signatory for Maxim Capital Group was Eric Sadkin.

The property

The parcel has frontage of 136 feet and is 98 feet deep with a total lot size of 11,254 square feet. The lot is irregular. The zoning is C6-9 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 $10.7 million. The most recent loan totaled $45.1 million and was provided by Naftali Credit Partners on July 13, 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 $7,500 in ECB penalties and $7,500 in OATH penalties in the last year.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 12 commercial properties representing 170,174 square feet of the 357,339 square feet. The largest owner is Torkian Group, followed by King’s College and then Grubb Properties.
On the tax block, there was one new building construction project filed totaling 340,376 square feet. It is a 388-unit, 340,376 square-foot residential (R-2) building submitted by Grubb Properties and filed by Richard Ohebshalom with plans filed December 11, 2014 and permitted December 7, 2015.

The majority, or 66 percent of the 357,339 square feet of built space are hotel buildings, with elevator buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Grubb Properties owned at least three commercial properties in New York City with 54,000 square feet and a city-determined market value of $19.1 million. (Market value is typically about 50% of actual value.) The portfolio has $378.6 million in debt, with top three lenders as Kennedy Wilson, Crum & Forster, and Maxim Capital Group respectively. Within the portfolio, the bulk, or 100 percent of the 54,000 square feet of built space are office properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

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