Jack Aini signs $19M refi with Signature Bank for office in Penn Station

Jack Aini through the entity Zhora State Equities LLC as borrower signed a refi loan with lender Signature Bank valued at $19 million for the office building (O6) at 286 Fifth Avenue in Penn Station, Manhattan.
The deal closed on September 12, 2022 and was recorded on September 16, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $19 million.The property has 44,380 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $428 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 Jack Aini was Jack A. Aini. The signatory for Signature Bank was Elizabeth Arato.

Prior sales and revenue

The 44,380-square-foot property generated revenue of $2.7 million or $60 per square foot, according to the most recent income and expense figures.

The property

The 286 Fifth Avenue parcel has frontage of 34 feet and is 125 feet deep with a total lot size of 4,258 square feet. The lot is irregular. The zoning is C5-2 which allows for up to 10 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 $9.9 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 one DOB violation, $10,000 in ECB penalties, and $16,000 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 Penn Station, the majority, or 69 percent of the 22.6 million square feet of commercial built space are office buildings, with elevator buildings next occupying 10 percent of the space. In sales, Penn Station has had very little sales volume relative to other neighborhoods with $204.4 million in sales volume in the last two years. For development, Penn Station has 2.2 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 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 23 commercial properties representing 275,215 square feet of the 1,121,454 square feet. The largest owner is McSam Hotel Group, followed by Sabet Group and then Aju Hotels & Resorts.
There are two active new building construction projects totaling 209,617 square feet. The largest is a N/A-unit, 140,834-square-foot B building developed by Michael Kirchmann with plans filed August 7, 2018 and permitted February 13, 2019. The second largest is a 182-unit, 68,783-square-foot R-1 building developed by Sam Chang with plans filed February 11, 2014 and permitted January 11, 2019.

The majority, or 65 percent of the 1.1 million square feet of built space are office buildings, with hotel buildings next occupying 32 percent of the space.

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