Harbor Group splits $107.7M FiDi loan into $71.6M senior and $36.1M mezz

Harbor Group International through the entity 55 Broadway Associates, LLC as borrower signed a refi loan with lender AIG through the entity American General Life Insurance Company valued at $71.6 million for the office building (O4) at 55 Broadway in Financial District, Manhattan.
The deal closed on July 29, 2024 and was recorded on August 2, 2024. The prior lender was AIG which held debt that had an original loan amount of $116.1 million.
The property has 309,381 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $231 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 Harbor Group International was Carla R. Stoner. The signatory for AIG was Patricia Hall. AIG split the original senior loan of $107.7 million from April 2021 into a $71.6 million senior loan and a $36.1 million mezzanine loan. A construction loan and a project loan totaling $8.4 million continue.

The property

The office building in Financial District has 309,381 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 78 feet and is 201 feet deep with a total lot size of 15,721 square feet. The lot is irregular. The zoning is C5-5 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 $63.3 million. The most recent loan totaled $8.4 million and was provided by AIG on September 30, 2021.

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 two DOB violations, $7,500 in ECB penalties, and $8,350 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 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 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 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 six commercial properties representing 1,117,873 square feet of the 1,486,188 square feet. The largest owner is Cammeby’s International Group, followed by Dennis Riese and then Harbor Group International.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 1.5 million square feet of built space are office buildings, with mixed-use buildings next occupying 3 percent of the space.

The borrower

The PincusCo database currently indicates that Harbor Group International owned at least seven commercial properties with 194 residential units in New York City with 1,312,913 square feet and a city-determined market value of $479.2 million. (Market value is typically about 50% of actual value.) The portfolio has $655 million in debt, with top three lenders as Goldman Sachs, AIG, and New York Community Bank respectively. Within the portfolio, the bulk, or 86 percent of the 1,312,913 square feet of built space are office properties, with elevator properties next occupying 10 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

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