HH Equities signs $13.8M refi loan with Safra National Bank for office in NoMad

HH Equities through the entity Hh 246 Fifth, LLC as borrower signed a refi loan with lender Safra National Bank valued at $13.8 million for the office building (O5) at 246 Fifth Avenue in NoMad, Manhattan.
The deal closed on October 4, 2023 and was recorded on October 17, 2023. The prior lender was Series 2014-GC18 which held debt that had an original loan amount of $15 million.
The property has 32,049 square feet of built space and 24,460 square feet of additional air rights for a total buildable of 56,490 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $429 and the price per buildable square foot is $243 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 4, 2013, for $19.9 million. The signatory for HH Equities was Ariel Akkad. The signatory for Safra National Bank was Stephan Mazzacca and Charles Shafer.

The property

The office building in NoMad has 32,049 square feet of built space and 24,460 square feet of additional air rights for a total buildable of 56,490 square feet according to a PincusCo analysis of city data. The parcel has frontage of 28 feet and is 125 feet deep with a total lot size of 5,649 square feet. The lot is irregular. The zoning is C5-2 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 $11.3 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 $50 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 NoMad, The majority, or 66 percent of the 12.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has 1.3 times the average sales volume among other neighborhoods with $461 million in sales volume in the last two years and is the 27th highest in Manhattan. For development, NoMad has near average amount of major developments among other neighborhoods and is the 23rd highest in Manhattan. It had 985,692 square feet of commercial and multi-family construction under development in the last two years, which represents 8 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 16 of the 36 commercial properties representing 705,103 square feet of the 1,347,539 square feet. The largest owner is Yucaipa Companies, followed by Stellar Management and then Savanna.
On the tax block, there was one new building construction project filed totaling 24,325 square feet. It is a 52-unit, 24,325 square-foot hotel/dormitory/shelter (R-1) building submitted by Ezra Aini with plans filed May 19, 2014 and permitted December 14, 2020.

The majority, or 58 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Hh Equities owned at least one commercial property in New York City with 10,723 square feet and a city-determined market value of $2.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single W2 property. It is located in Brooklyn.

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