Harry Sohn signs $35.8M loan modification for residential elevator in Hell’s Kitchen

Harry Sohn through the entity 56 Scarlett Associates LLC as borrower signed a loan modification with lender Flagstar Bank through the entity New York Community Bank valued at $35.8 million for the 95-unit residential elevator building (D7) at 863-867 9th Avenue in Hell’s Kitchen, Manhattan.
The deal closed on September 1, 2022 and was recorded on August 1, 2023. The prior lender was New York Community Bank which held debt that had an original loan amount of $38.8 million.
The property has 71,532 square feet of built space and 19,525 square feet of additional air rights for a total buildable of 91,118 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $500 and the price per buildable square foot is $392 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 owner bought the property on December 16, 2010, for $38 million. The signatory for Harry Sohn was Harry Sohn. The signatory for Flagstar Bank was John Feijoo. This is a modification of a 10-year, 2017 loan, the Interest rate is 4%.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Luis Delacruz, head officer. The business entity is 56 Scarlett Associates Llc. The 71,532-square-foot property generated revenue of $4 million or $56 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 95 residential units in Hell’s Kitchen has 71,532 square feet of built space and 19,525 square feet of additional air rights for a total buildable of 91,118 square feet according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 175 feet deep with a total lot size of 15,136 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $25.3 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 housing violation and $800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 13, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 10 of the 25 commercial properties representing 608,565 square feet of the 894,827 square feet. The largest owner is Zhi Lin, followed by Yellowstone Real Estate Investments and then Scharfman Organization.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 894,827 square feet of built space are hotel buildings, with elevator buildings next occupying 28 percent of the space.

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