InterVest files $126.4M pre-foreclosure at 30 Broad in FiDi

InterVest Capital Group, the company formerly known as Wafra Capital Partners, filed a $126.4 million pre-foreclosure action against an affiliate of Tribeca Investment Group which controls the office building at 30 Broad Street in the Financial District of Manhattan. Tribeca controls it through a long-term ground lease. The case was filed in New York State Supreme Court in Manhattan yesterday.
Case LINK

According to the complaint, “On or about January 27, 2023, M&T Bank, as Administrative Agent, Borrower, the Lenders, and guarantors, William Brodsky, Mark Gordon, Elliot Ingerman and Edge Principal Investments III, L.P. (collectively, “Guarantor”) entered into that certain Forbearance Agreement (the “Original Forbearance Agreement”), dated as of January 27, 2023… Additional Events of Default have occurred and are continuing under the Forbearance Agreement as a result of Borrower’s failure to make any of the required payments in accordance with the Forbearance Agreements…”

Court filings represent the position of one party and are not necessarily accurate or complete.

Tribeca Investment Group, led by Elliott Ingerman and Bill Brodsky, under the name Tribeca Associates, bought the leasehold in 2016 for $130 million, and took out a $96 million loan from M&T Bank at the time. The owners refinanced the loan in 2019, borrowing a total of $124.6 million.

The property faces several challenges that put pressure on the value of the loan, including that it faces a ground rent reset in 2035, and that office space values have declined sharply as workers continue to work from home in significant numbers.

The fee owner of the property is Solil Management, which owns and manages the assets of the estate of Sol Goldman. The lease expires in 2079 but will be reset in 2035 to pay 4.5 percent of the property’s market value. The annual rent was $2.7 million at 2016, when Tribeca bought the ground lease.

In February 2024, InterVest bought the loan from M&T Bank, as PincusCo first reported at the time.

InterVest Capital Partners changed its name from Wafra Capital Partners in 2022. The company was originally the Structured Finance and Business Development Divisions of Wafra, Inc., but in 2012 became a separating operating entity from Wafra, according to a company release.

Wafra Inc., also headquartered in Manhattan, is owned by the Kuwait Public Institution for Social Security.

InterVest last year bought a defaulted loan on a building it owns at 300 Lafayette Street.

The property

The office building in Financial District has 370,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 88 feet and is 149 feet deep with a total lot size of 13,219 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 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 $130.6 million. The most recent loan totaled 0.0 and was provided by 30 Broad Owner LLC on July 19, 2024.

Prior sales and revenue

This property was sold for $130 million on April 1, 2016.

The 370,000-square-foot property generated revenue of $24.1 million or $65 per square foot, according to the most recent income and expense figures.

Development

For the tax lot building, it received its initial certificate of occupancy on February 12, 2021.

Violations and lawsuits

According to city public data, the property has received $2,500 in ECB penalties and $2,500 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 370,000 square feet of the 1,566,893 square feet. The identified owner is Tribeca Investment Group. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Tribeca Investment Group owned at least one commercial property in New York City with 370,000 square feet and a city-determined market value of $130.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

The surrounding

Within a 400-foot radius of 36 Broad Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months. Of those five items, two were sales above $5 million totaling $190.5 million. The most recent of the two was Albir Allahham and Midtown Equities which bought three condo units in the 24,148-square-foot, 165-unit mixed-use building (RM) on 40 Broad Street and zero other properties for $18 million from Zev Marmurstein on July 18, 2024. Of those five items, three were loans above $5 million totaling $896.2 million. The most recent of the three was Albir Allahham and Midtown Equities in which borrowed $11.7 million from Webster Bank secured by three condo units in the 24,148-square-foot, 165-unit mixed-use building (RM) on 40 Broad Street on July 18, 2024.

Direct link to the property’s ACRIS page and link to DOB NOW portal.