Highpoint signs $16M refi loan with Prime Finance for two properties in East Village

Highpoint Property Group through the entity 436 And 442 East 13th Street Owner LLC as borrower signed a refi loan with lender Prime Finance through the entity Prime Finance Short Duration Holding Company VIII valued at $16 million for two residential elevator properties with 12 residential units at 436 East 13th Street and 442 East 13th Street in East Village, Manhattan.
The deal closed on March 28, 2023 and was recorded on April 4, 2023. The prior lender was IberiaBank which held debt that had an original loan amount of $14 million.
The two properties have 25,444 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $628 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 Highpoint Property Group was Drew Popkin.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 436 East 13th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Drew Popkin, head officer and Cory Chestman, site manager. The business entity is 436 And 442 East 13th Street Owner LLC. The two properties with a total of 25,444 square feet of built space generated revenue of $1.1 million per year or $44 per square foot.

The property

The residential elevator building with 6 residential units in East Village has 25,444 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 103 feet deep with a total lot size of 2,504 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.5 million. The most recent loan totaled $14 million and was provided by IberiaBank on March 30, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $250 in OATH penalties in the last year.

The block

On the tax block of 436 East 13th Street, PincusCo has identified the owners of 20 of the 34 commercial properties representing 264,952 square feet of the 392,139 square feet. The largest owner is Zdzislaw Czerny, followed by Tsukaki Co., Ltd. and then Kushner Companies.
There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 392,139 square feet of built space are walkup buildings, with elevator buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Highpoint Property Group owned at least 20 commercial properties with 140 residential units in New York City with 156,242 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $95.2 million in debt, with top three lenders as East West Bank, Bank Leumi, and IberiaBank respectively. Within the portfolio, the bulk, or 60 percent of the 156,242 square feet of built space are walkup properties, with mixed-use properties next occupying 21 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Brooklyn next at 42 percent of the space.

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