Ionian Management signs $58M refi loan with First Republic for office in Midtown West

Ionian Management through the entity 1790 Broadway Associates LLC as borrower signed a refi loan with lender First Republic Bank valued at $58 million for the office building (O4) at 1790 Broadway in Midtown West, Manhattan.
The deal closed on August 18, 2022 and was recorded on September 2, 2022. The prior lender was First Republic Bank which held debt that had an original loan amount of $55 million. The property has 206,334 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $281 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 Ionian Management was Sofia S. Nilonas. The signatory for First Republic Bank was Alan J. Perlowitz. Ionian Management is a shipping, oil, gas and real estate investment company.

The property

The 1790 Broadway parcel has frontage of 108 feet and is 126 feet deep with a total lot size of 10,625 square feet. The lot is irregular. The zoning is C5-1 which allows for up to 4 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 $86 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received two DOB violations, $6,250 in ECB penalties, and $11,850 in OATH penalties 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 neighborhood

In Midtown West, the majority, or 73 percent of the 77.7 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 12 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 36 commercial properties representing 885,323 square feet of the 3,221,345 square feet. The two identified owners are Extell Development and Solil Management.
There is one active new building construction project totaling 1,212,992 square feet. It is a 179-unit, 1,212,992-square-foot R-2 building developed by Extell Development with plans filed November 9, 2012 and permitted August 18, 2015.

The majority, or 76 percent of the 1.8 million square feet of built space are elevator buildings, with office buildings next occupying 18 percent of the space.

Direct link to Acris document. link