Izaki Group signs $30.6M refi for six properties in Greenwich Village

Izaki Group Investments through the entity 525 6th Ave LLC as borrower signed a refi loan with lender Bank Leumi valued at $30.6 million for six properties including the mixed-use building (K4) at 104 West 14th Street in Greenwich Village, Manhattan, retail building (O5) at 527 Avenue of the Americas in Greenwich Village, Manhattan, and mixed-use building (K4) at 523 Avenue of the Americas in Greenwich Village, Manhattan.
The deal closed on December 15, 2021 and was recorded on July 15, 2022. The prior lender was Bank Leumi which held debt that had an original loan amount of $30.5 million.The six properties have 41,068 square feet of built space and 48,932 square feet of additional air rights for a total buildable of 90,003 square feet according to PincusCo analysis of city data. The loan price per built square foot is $743 and the price per buildable square foot is $339 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 Izaki Group Investments was Eldad Blaustein. The signatory for Bank Leumi was Oren Saperstein and Roger Rofe.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 104 West 14th Street.

Prior sales and revenue

The six properties with a total of 41,068 square feet of built space generated revenue of $3.5 million per year or $85 per square foot.

The property

The 104 West 14th Street parcel has frontage of 43 feet and is 106 feet deep with a total lot size of 4,670 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.5 million.The most recent loan totaled $30.5 million and was provided by Bank Leumi on December 15, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $5,750 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the six buildings received an initial certificate of occupancy in the last ten years. 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 Greenwich Village, the bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has the 9th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 658,420 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 104 West 14th Street, PincusCo has identified the owners of 16 of the 26 commercial properties representing 167,400 square feet of the 454,050 square feet. The largest owner is Izaki Group Investments, followed by BLDG Management and then KPG Funds. There are no active new building construction projects on this tax block.

The majority, or 36 percent of the 818,746 square feet of built space are residential elevator buildings, with specialty buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Izaki Group Investments owned at least 11 commercial properties in New York City with 41,068 square feet and a city-determined market value of $23.2 million. (Market value is typically about 50% of actual value.) The portfolio has $112.3 million in debt, borrowed from Bank Leumi. Within the portfolio, the bulk, or 82 percent of the 41,068 square feet of built space are mixed-use properties, with retail properties next occupying 18 percent of the space. They are all located in Manhattan.

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