Hilson Management signs $47.4M refi loan with Maverick for office in Garment District

Hilson Management through the entity 390 Fifth LLC as borrower signed a refi loan with lender Maverick Real Estate Partners through the entity Fifth Office LLC valued at $47.4 million for the office building (O6) at 386 Fifth Avenue in the Garment District, Manhattan, and a tax parcel with associated air rights.
The deal closed on March 31, 2025 and was recorded on April 23, 2025. The prior lender was Signature Bank which provided $50 million in 2016. In February 2024, Blackstone Group as owner of a stake in former Signature Bank loans, sold the debt to Maverick Real Estate Partners.

The office property has 133,544 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $355 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 Hilson Management was Jeremy Schwalbe . The signatory for Maverick Real Estate Partners was Jim Yetter.

The property

The office building in Garment District has 133,544 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 67 feet and is 166 feet deep with a total lot size of 12,575 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is an Individual Landmark. The city-designated market value for the property in 2022 is $36.9 million.

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 one DOB violation, $6,250 in ECB penalties, and $6,840 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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 10th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 386 5th Avenue, PincusCo has identified the owners of 18 of the 33 commercial properties representing 987,399 square feet of the 1,436,912 square feet. The largest owner is Dong Yin Development (Holdings) Limited, followed by Hilson Management and then Aju Hotels Investments.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Hilson Management owned at least two commercial properties with 37 residential units in New York City with 164,999 square feet and a city-determined market value of $47.8 million. (Market value is typically about 50% of actual value.) The portfolio has $18 million in debt, borrowed from Signature Bank and Maverick Real Estate Partners. Within the portfolio, the bulk, or 81 percent of the 164,999 square feet of built space are office properties, with elevator properties next occupying 19 percent of the space. They are all located in Manhattan.

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