Haymes Investment signs $100M refi with Deutsche Bank for office in Penn Station

Haymes Investment Company through the entity 330 West 34th Owner LLC as borrower signed a refi loan with lender Deutsche Bank through the entity DBR Investments Co. Limited valued at $100 million for the office building (O6) at 330 West 34th Street in Penn Station, Manhattan.
The deal closed on August 18, 2022 and was recorded on October 4, 2022. The prior lender was Series 2007-TOP27 which held debt that had an original loan amount of $50.1 million. The property has 646,464 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $154 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 Haymes Investment Company was Stephen D. Haymes. The signatory for Deutsche Bank was Peter Castro and Paul K. Richardson.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Paula Gain, head officer and Ronald Haley, agent. The business entity is Ymca Of Greater Ny. The 646,464-square-foot property generated revenue of $42.1 million or $65 per square foot, according to the most recent income and expense figures.

The property

The 330 West 34th Street parcel has frontage of 235 feet and is 197 feet deep with a total lot size of 46,412 square feet. The zoning is C6-4 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 city-designated market value for the property in 2022 is $182.3 million.

Violations and lawsuits

The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $225 million judgment concerning a ground lease filed on March 11, 2022, by Haymes Investment Company against Vornado Realty Trust. In addition, according to city public data, the property has received $1,190 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 7, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Penn Station, the majority, or 69 percent of the 22.6 million square feet of commercial built space are office buildings, with elevator buildings next occupying 10 percent of the space. In sales, Penn Station has had very little sales volume relative to other neighborhoods with $204.4 million in sales volume in the last two years. For development, Penn Station has 2.2 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 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 1,933,853 square feet of the 2,254,251 square feet. The largest owner is Vornado Realty Trust, followed by SL Green Realty and then Haymes Investment Company.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 2.3 million square feet of built space are office buildings, with elevator buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Haymes Investment Company owned at least two commercial properties in New York City with 626,625 square feet and a city-determined market value of $171.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 626,625 square feet of built space are office properties, with retail properties next occupying 2 percent of the space. They are all located in Manhattan.

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