Howard Hershkovich signs $59.8M refi loan with Dime Community Bank for 12 properties in Manhattan
Howard Hershkovich through the entity Hf Ues LLC as borrower signed a refi loan with lender Dime Community Bank valued at $59.8 million for 12 properties including the 42-unit residential elevator building (D3) at 418 East 77th Street in Lenox Hill, Manhattan, 30-unit residential elevator building (D1) at 425 East 75th Street in Lenox Hill, Manhattan, and 30-unit residential walkup building (C4) at 305 East 75th Street in Lenox Hill, Manhattan.
The deal closed on February 24, 2023 and was recorded on March 10, 2023. The prior lender was H.I.G. Capital which held debt that had an original loan amount of $60 million.
The 12 properties have 150,231 square feet of built space and 37,612 square feet of additional air rights for a total buildable of 178,722 square feet according to PincusCo analysis of city data. The loan price per built square foot is $397 and the price per buildable square foot is $334 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 Howard Hershkovich was Howard Hershkovich. The signatory for Dime Community Bank was Louis Ciniglio.
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 418 East 77th Street.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Howard Hershkovich, head officer and Avi Singer, officer. The business entities are Tissa Management and Hf Ues Llc. The 12 properties with a total of 150,231 square feet of built space generated revenue of $5.5 million per year or $36 per square foot.
The property
The 418 East 77th Street parcel has frontage of 75 feet and is 102 feet deep with a total lot size of 7,662 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 $4.8 million.The most recent loan totaled $60 million and was provided by H.I.G. Capital on August 30, 2021.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $25,604 in ECB penalties, 223 housing violations, $50,909 in OATH penalties, and two housing litigations in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
The block
On the tax block of 418 East 77th Street, PincusCo has identified the owners of 12 of the 30 commercial properties representing 245,617 square feet of the 453,297 square feet. The largest owner is Vincent Q. Giffuni, followed by Tissa Management and then Robert Gilardian.
There are no active new building construction projects on this tax block.
The majority, or 50 percent of the 452,005 square feet of built space are elevator buildings, with walkup buildings next occupying 24 percent of the space.
The borrower
The PincusCo database currently indicates that Howard Hershkovich owned at least 10 commercial properties in New York City with 157,720 square feet and a city-determined market value of $19.6 million. (Market value is typically about 50% of actual value.) The portfolio has $15.2 million in debt, borrowed from New York Community Bank and Investors Bank. Within the portfolio, the bulk, or 80 percent of the 157,720 square feet of built space are walkup properties, with elevator properties next occupying 11 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.
Direct link to Acris document. link