Izaki Group signs $73M construction loan for 68-unit condo in Greenwich Village
Izaki Group Investments through the entity 525 6th Ave LLC as borrower signed a new construction loan with lender Valley National Bank valued at $73 million for the three-unit development building at 525 Sixth Avenue in Greenwich Village, Manhattan.
On the lot, there is one active new building construction project for a 68-unit, 96,905 square-foot residential (R-2) building. The project was submitted by Izaki Group Investments and filed by Modi Feibish with plans filed October 27, 2022 and permitted April 26, 2024. On the tax lot, the most recent condominium plan was filed by 525 6TH AVE LLC to create 68 residential units and 2 commercial units in a building at 525 6th Avenue in Greenwich Village, Manhattan, called 525 6th Avenue Condominium that has a $219 million sellout, according to an June 17, 2024 submission to the New York State Attorney General. The principal of the sponsor, 525 6TH AVE LLC, was Eldad Blaustein.
The deal closed on June 18, 2024 and was recorded on July 10, 2024. The property has 4,660 square feet of built space and 97,000 square feet of additional air rights for a total buildable of 97,000 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $752 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 owner bought the property on December 15, 2021, for $46 million. The signatory for Izaki Group Investments was Eldad Blaustein. The signatory for Valley National Bank was Oren Sapirstein and Roger Rofe.
The property
The city-designated market value for the property in 2022 is $2.1 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 property for the past 24 months. In addition, according to city public data, the property has received $2,500 in ECB penalties and $7,030 in OATH penalties in the last year.
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 3.2 times the average sales volume among other neighborhoods with $871 million in sales volume in the last two years and is the 9th highest in Manhattan. For development, Greenwich Village has 2.7 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 16 of the 22 commercial properties representing 301,104 square feet of the 364,121 square feet. The largest owner is S.W. Management, followed by Rosen Equities and then Louis Bacon.
On the tax block, there was one new building construction project filed totaling 96,905 square feet. It is a 71-unit, 96,905 square-foot residential (R-2) building submitted by Izaki Group Investments and filed by Modi Feibish with plans filed October 27, 2022 and permitted April 26, 2024.
The majority, or 38 percent of the 364,121 square feet of built space are office buildings, with mixed-use buildings next occupying 22 percent of the space.
The borrower
The PincusCo database currently indicates that Izaki Group Investments owned at least 11 commercial properties with 140 residential units in New York City with 235,373 square feet and a city-determined market value of $26.8 million. (Market value is typically about 50% of actual value.) The portfolio has $142.8 million in debt, borrowed from Bank Leumi. Within the portfolio, the bulk, or 83 percent of the 235,373 square feet of built space are elevator properties, with mixed-use properties next occupying 14 percent of the space. They are all located in Manhattan.
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