Hung Pin Hung signs $15M acquisition loan with Avana Capital for dev site in NoMad

Hung Pin Hung, of through the entity 842 Edenview LLC as borrower signed an acquisition loan with lender Avana Capital through the entity Avana Capital, L.L.C. valued at $15 million for the development site at 842 Sixth Avenue in NoMad, Manhattan.
The deal closed on August 22, 2024 and was recorded on September 9, 2024.
The signatory for Hung Pin Hung was Hung Pin Hung. The signatory for Avana Capital was Steven Ellsworth.
On the lot, there was one new building construction project, 121204419, for a 168-unit, 77,819 square-foot hotel (R-1) building. The project was submitted by Rob Chun with plans filed November 13, 2017 and permitted November 1, 2018.

The property

The parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 7,718 square feet. The lot is irregular. The zoning is C6-4X 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 $12 million.

Violations and lawsuits

The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $33.3 million commercial foreclosure concerning a loan filed on December 22, 2023, by Avana Capital against Robert Y. Chun and Yong Woo Phillip Chun. In addition, according to city public data, the property has received $12,150 in OATH penalties in the last year.

The neighborhood

In NoMad, The majority, or 66 percent of the 13 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has 1.6 times the average sales volume among other neighborhoods with $409.6 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, NoMad has 2.2 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 13 of the 23 commercial properties representing 580,430 square feet of the 891,689 square feet. The largest owner is Lam Group, followed by Vanbarton Group and then Hung Pin Hung.
On the tax block, there were three new building construction projects totaling 750,963 square feet. The largest is a 373,990 square-foot business (B) building submitted by HFZ Capital Group and filed by Anthony Marrone with plans filed September 19, 2017 and permitted November 19, 2018. The second largest is a 401-unit, 299,154 square-foot hotel/dormitory/shelter (R-1) building submitted by Lam Group and filed by John Lam with plans filed November 7, 2014 and permitted August 19, 2015.

The majority, or 58 percent of the 891,689 square feet of built space are hotel buildings, with office buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Hung Pin Hung owned at least three commercial properties with 24 residential units in New York City with 126,129 square feet and a city-determined market value of $16.4 million. (Market value is typically about 50% of actual value.) The portfolio has $14 million in debt, borrowed from TD Bank and Investors Bank. Within the portfolio, the bulk, or 80 percent of the 126,129 square feet of built space are hotel properties, with elevator properties next occupying 20 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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