Heller Properties signs $28.3M refi for office in SoHo

Heller Properties through the entity Spring Street Co. LLC as borrower signed a refi loan with lender Apple Bank for Savings valued at $28.3 million for the office building (O6) at 72 Spring Street in SoHo, Manhattan.
The deal closed on February 16, 2023 and was recorded on February 24, 2023. The prior lender was Apple Bank for Savings which held debt that had an original loan amount of $40 million. The property has 109,377 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $258 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 Heller Properties was Samuel M. Heller. The signatory for Apple Bank for Savings was Cynthia Wang. The prior loan was $40 million given in 2013.

The property

The 72 Spring Street parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,600 square feet. The lot is irregular. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $39.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $2,000 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 $5 million on this tax lot.

The neighborhood

In SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 2 times the average sales volume among other neighborhoods with $699.5 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods. It had 389,037 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 43 commercial properties representing 109,615 square feet of the 405,880 square feet. The largest owner is LaSalle Investment Management, followed by Witnick Real Estate Partners and then Squire Investments.
On the tax block, there was one new building construction project filed totaling 23,445 square feet. It is a 12-unit, 23,445-square-foot J-2 building developed by John Zaccaro Jr. with plans filed April 17, 2008 and permitted February 9, 2018.

The majority, or 58 percent of the 234,741 square feet of built space are office buildings, with elevator buildings next occupying 16 percent of the space.

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