Hotel, restaurant owner signs $8M refi with Hanover Capital for LES walkup with retail

Hotel and restaurant owner Arthur Karpati through the entity 191 Chrystie LLC as borrower signed a refi loan with lender Hanover Capital through the entity 191 Chrystie Lender LLC valued at $8 million for the seven-unit residential walkup building (C7) with retail at 191 Chrystie Street in Lower East Side, Manhattan.
The building is home to the club Outer Heaven.
The deal closed on March 28, 2024 and was recorded on April 18, 2024. The prior lender was M&T Bank which held debt that had an original loan amount of $8 million.The property has 37,500 square feet of built space and 9,498 square feet of additional air rights for a total buildable of 46,992 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $213 and the price per buildable square foot is $170 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 Arthur Karpati was Arthur Karpati. Traded NY reported on the loan previously.

The property

The residential walkup building with 7 residential units in Lower East Side has 37,500 square feet of built space and 9,498 square feet of additional air rights for a total buildable of 46,992 square feet according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 125 feet deep with a total lot size of 6,249 square feet. The zoning is C6-3A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $18.2 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 $3,280 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 28, 2012. 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 10 of the 26 commercial properties representing 217,539 square feet of the 377,750 square feet. The largest owner is Omnia Group, followed by North Hill Capital Management and then Demarinis.
On the tax block, there were two new building construction projects totaling 91,871 square feet. The largest is a 26-unit, 48,724 square-foot residential (R-2) building submitted by Omnia Group and filed by David Paz with plans filed February 9, 2022 and permitted June 14, 2022. The second largest is a 14-unit, 43,147 square-foot residential (R-2) building submitted by Scott Kummings with plans filed November 22, 2017 and permitted January 24, 2019.

The majority, or 37 percent of the 377,750 square feet of built space are walkup buildings, with office buildings next occupying 22 percent of the space.

Direct link to Acris document. link