Hudson Companies signs $104.5M construction loan for 112-unit mixed-use in Hell’s Kitchen

Hudson Companies through the entity Housing Is A Human Right LLC as borrower signed a new construction loan with lender Webster Bank valued at $104.5 million for a 112-unit, mixed-use project at 806 Ninth Avenue in Hell’s Kitchen, Manhattan.

Hudson Companies plans to build a nine-story building with a total of 129,105 square feet, that will be divided into four condominium units. Hudson will keep or sell three of them. Two of those are are residential units, one with 100 units and another with 12 units, and the third is a 7,616-square-foot retail unit. Hudson will convey the fourth unit, a 44,915 office unit, to be used by the Metropolitan Transportation Authority.

The deal closed on March 27, 2024 and was recorded on April 5, 2024.
The signatory for Hudson Companies was David Kramer. The signatory for Webster Bank was K. James Dittbrenner.

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 not received any significant violations in the last year.

The block

On the tax block of 364 West 54th Street, PincusCo has identified the owners of seven of the 11 commercial properties representing 100,115 square feet of the 308,501 square feet. The largest owner is Nikitas Drakotos, followed by New York Police Department and then Mark Drakotos.

The majority, or 66 percent of the 308,501 square feet of built space are office buildings, with specialty buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that Hudson Companies owned at least 62 commercial properties with 2,381 residential units in New York City with 2,566,804 square feet and a city-determined market value of $313.7 million. (Market value is typically about 50% of actual value.) The portfolio has $753 million in debt, with top three lenders as MLN Partners, CitiBank, and Santander Bank respectively. Within the portfolio, the bulk, or 68 percent of the 2,566,804 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Manhattan next at 4 percent of the space.

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