Hirshmark buys $7.2M note secured by 53-unit building in Washington Heights
Hirshmark Capital through the entity 268 Cabrini Funding LLC bought a note with an original principal of $7.2 million from Capital One secured by Empire Management’s 53-unit residential elevator building (D1) at 268-330 Cabrini Boulevard in Washington Heights, Manhattan.
The deal closed on February 20, 2024 and was recorded on March 4, 2024. The prior lender was Capital One which held debt that had an original loan amount of $7.2 million.The property has 52,446 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $zero 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 Empire Management was Fred Ohebshalom.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Steven Kurlander, head officer and Fred Shalom, officer. The business entity is Riverside 220e53-Fo Llc.
The property
The residential elevator building with 53 residential units in Washington Heights has 52,446 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 156 feet and is 85 feet deep with a total lot size of 12,524 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $7.4 million. The most recent loan totaled $7.2 million and was provided by Capital One on January 29, 2021.
Violations and lawsuits
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1 million judgment concerning a housing violations filed on January 6, 2023, by City of New York against Fred Ohebshalom and Empire Management. In addition, according to city public data, the property has received one DOB violation, 10 housing violations, and $100 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 block
On this tax block, PincusCo has identified the owners of 21 of the 38 commercial properties representing 1,146,291 square feet of the 1,664,139 square feet. The largest owner is Vincent Garrow, followed by Jacob Gold and then Adi Management.
On the tax block, there were five new building construction projects totaling 30,591 square feet. The largest is a 21-unit, 18,154 square-foot residential (R-2) building submitted by Yisroel Eckstein with plans filed September 11, 2020 and permitted June 9, 2022. The second largest is a one-unit, 4,554 square-foot residential (R-3) building submitted by Isaac Broyn with plans filed August 25, 2015 and it has not been permitted yet.
The majority, or 77 percent of the 1.7 million square feet of built space are elevator buildings, with walkup buildings next occupying 11 percent of the space.
The borrower
The PincusCo database currently indicates that Empire Management owned at least 24 commercial properties with 1,005 residential units in New York City with 1,185,792 square feet and a city-determined market value of $239.5 million. (Market value is typically about 50% of actual value.) The portfolio has $313 million in debt, with top three lenders as New York Community Bank, Barclays, and Santander Bank respectively. Within the portfolio, the bulk, or 80 percent of the 1,185,792 square feet of built space are elevator properties, with H1 properties next occupying 11 percent of the space. They are all located in Manhattan.
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