InterVest-controlled entity buys $143M note secured by Nightingale, InterVest SoHo office building, foreclosure now off

An InterVest Capital Partners-controlled entity, Lafayette Portfolio Funding Ltd., bought a note with an original principal of $143 million from TPG Real Estate Partners secured by Nightingale Properties and InterVest Capital Partners’ office building (O3) at 300 Lafayette Street in SoHo, Manhattan.
The loan had been threatened by foreclosure, as Crain’s reported last month. That threat has been removed with the purchase of the loan.
The transaction was disclosed in a New York City property record filing. Although Lafayette Portfolio Funding Ltd. is registered in the Cayman Islands, it was given an alternate address in city records at the New York City offices of InterVest Capital Partners.
The deal closed on July 21, 2023 and was recorded on August 9, 2023. The property has 59,757 square feet of built space according to a PincusCo analysis of city data.

Nightingale and InterVest, at the time known as Wafra Capital Partners, bought the leasehold that controls the property for $123.7 million in 2019. InterVest manages some of the investments for the Kuwait public pension fund.

The property

The office building in SoHo has 59,757 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 83 feet deep with a total lot size of 11,621 square feet. The lot is irregular. The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $15.4 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 $900 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 14, 2019, for the new building construction project that called for a 57,427 square-foot office (B) building. The project was developed by Related Companies and LargaVista Companies with plans filed September 9, 2014 and permitted October 27, 2016.

The neighborhood

In SoHo, The bulk, or 46 percent of the 9.5 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 14 percent of the space. In sales, SoHo has 1.9 times the average sales volume among other neighborhoods with $670.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 371,494 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the six commercial properties representing 274,687 square feet of the 279,687 square feet. The largest owner is William Gottlieb Real Estate, followed by InterVest Capital Partners and then Warren Freyer.

The majority, or 82 percent of the 279,687 square feet of built space are office buildings, with mixed-use buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that InterVest Capital Partners owned at least 15 commercial properties with 504 residential units in New York City with 735,331 square feet and a city-determined market value of $56.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 35 percent of the 735,331 square feet of built space are elevator properties, with walkup properties next occupying 33 percent of the space. The bulk, or 68 percent of the built space, is in Bronx, with Manhattan next at 32 percent of the space.
The PincusCo database currently indicates that Nightingale Properties owned at least five commercial properties in New York City with 1,459,346 square feet and a city-determined market value of $207.2 million. (Market value is typically about 50% of actual value.) The portfolio has $106.9 million in debt, with top three lenders as TPG Real Estate Partners, East West Bank, and Capstone Equities respectively. Within the portfolio, the bulk, or 100 percent of the 1,459,346 square feet of built space are office properties, with specialty properties next occupying 0 percent of the space. The bulk, or 74 percent of the built space, is in Manhattan, with Brooklyn next at 26 percent of the space.

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