Hilson signs $83.5M refi with Beach Point for three office buildings in Midtown

Hilson Management through the entity 185 Madison Avenue, LLC as borrower signed a refi loan with lender Beach Point Capital Management through the entity Bp Holdings Ochre LLC valued at $83.5 million for three office properties in Midtown, Manhattan, including the office building (O6) at 5 West 37th Street in Grand Central, office building (O6) at 185 Madison Avenue in Grand Central, and office building (O6) at 349 Lexington Avenue in Murray Hill.
The deal closed on December 24, 2025 and was recorded on January 12, 2026. The prior lender was Rialto Capital Advisors which held debt that had an original loan amount of $99.8 million.The three properties have 233,667 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $357 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 Beach Point Capital Management was Michael Haynes.

Prior sales, articles and revenue

Out of the three properties, two with a total of 233,667 square feet of built space generated revenue of $8.7 million per year.

The property

The office building in Grand Central has 233,667 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 100 feet deep with a total lot size of 4,941 square feet. 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 $18.5 million.

Violations and lawsuits

The properties were involved in three lawsuits and zero bankruptcies over the past two years. The highest value suit was a $35.2 million commercial foreclosure concerning a loan filed on November 7, 2025, by Rialto Management Group and Hines against Hilson Management. In addition, according to city public data, the properties have received three DOB violations, $625 in ECB penalties, and $10,675 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 Grand Central, The majority, or 83 percent of the 44.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has the 3rd highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Grand Central is the 7th most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space. There were five pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 185 Madison Avenue, PincusCo has identified the owners of six of the 10 commercial properties representing 212,579 square feet of the 278,829 square feet. The largest owner is Erica Lerner, followed by Hilson Management and then Community Church Of New York.
On the tax block, there was one new building construction project filed totaling 172,797 square feet. It is a 137-unit, 172,797 square-foot residential (R-2) building submitted by Continuum Company and filed by Jeff Loveland with plans filed June 13, 2024 and permitted May 9, 2025.

The majority, or 44 percent of the 278,829 square feet of built space are office buildings, with elevator buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Hilson Management owned at least five commercial properties with 37 residential units in New York City with 398,666 square feet and a city-determined market value of $100.1 million. (Market value is typically about 50% of actual value.) The portfolio has $117.9 million in debt, with top three lenders as Maverick Real Estate Partners, New York Community Bank, and Citibank respectively. Within the portfolio, the bulk, or 92 percent of the 398,666 square feet of built space are office properties, with elevator properties next occupying 8 percent of the space. They are all located in Manhattan.

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