Jackson Mak signs $22M refi with Maxim Credit for hotel in Financial District

Jackson Mak through the entity Premier Emerald, LLC as borrower signed a refi loan with lender Maxim Credit Group valued at $22 million for the midblock hotel building at 11 Stone Street in the Financial District, Manhattan.
The deal closed on April 26, 2022 and was recorded on May 9, 2022. The prior lender was OceanFirst Bank which held debt that had an original loan amount of $15 million. The property has 59,410 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $370 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 October 16, 2006, for $10.2 million. The signatory for Jackson Mak was Jackson Mak. The signatory for Maxim Credit Group was Joshua Knoll.

The property

The 11 Stone Street parcel has frontage of 44 feet and is 83 feet deep with a total lot size of 3,807 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 $29.7 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 $1,380 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 130-unit, 56,988-square-foot R-1 building. The project was developed by Andy Mak with plans filed August 9, 2013 and permitted May 9, 2016.

The neighborhood

In Financial District, the majority, or 71 percent of the 85.8 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Financial District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 13 commercial properties representing 1,896,236 square feet of the 2,047,356 square feet. The largest owner is Metropolitan Transportation Authority, followed by Invesco and then Heejung Kang. There is one active new building construction project totaling 56,988 square feet. It is a 130-unit, 56,988-square-foot R-1 building developed by Andy Mak with plans filed August 9, 2013 and permitted May 9, 2016.

The majority, or 92 percent of the 2.1 million square feet of built space are office buildings, with hotel buildings next occupying 3 percent of the space.

The borrower

The PincusCo database currently indicates that Jackson Mak owned at least one commercial property with 17,027 square feet and a city-determined market value of $6.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 11 Stone Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which CIT Bank bought the 143,731-square-foot, one-unit hotel (H2) on 8 Stone Street for $74.3 million from Rockwood Capital on June 8, 2021.
Of those three items, two were loans above $5 million totaling $128.1 million. The most recent of the two was Invesco Real Estate which borrowed $112.6 million from PCCP secured by the 361,710-square-foot, 76-unit office building (O4) on 80 Broad Street on November 4, 2021.

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