Jenel Management refis Haier Building in Garment District with $23.8M loan from Bank of America

Jenel Management through the entity Haier America Building,LLC as borrower signed a refinance loan with lender Bank of America valued at $23.8 million for the landmarked Haier Building office building (O5) at 1356 Broadway in Garment District, Manhattan. The building opened as the headquarters for the Greenwich Savings Bank in 1924, and the city designated the building a landmark in 1992. Jenel Management has had a stake in the building since at least 2001. The prior debt was $23 million originated in 2013 and securitized in 2014.
The new loan closed on December 20, 2023 and was recorded on December 29, 2023. The property has 76,804 square feet of built space and 99,258 square feet of additional air rights for a total buildable of 175,990 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $309 and the price per buildable square foot is $134 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.)

Prior sales and revenue

The 76,804-square-foot property generated revenue of $5.7 million or $74 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 105 feet and is 159 feet deep with a total lot size of 17,599 square feet. The lot is irregular. The zoning is C6-6 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 property is in the Individual Landmark. The city-designated market value for the property in 2022 is $30.5 million.

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 $1,250 in ECB penalties and $2,375 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 27, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 1.7 times the average sales volume among other neighborhoods with $588.9 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Garment District is the 6th most active neighborhood among other neighborhoods. It had 5.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 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 17 commercial properties representing 520,298 square feet of the 1,583,624 square feet. The largest owner is Elo Organization, followed by Empire State Realty Trust and then Sioni Group.
On the tax block, there were two new building construction projects totaling 413,120 square feet. The largest is a 300-unit, 368,790 square-foot residential (R-2) building submitted by Sioni Group and filed by Jack Yadidi with plans filed December 15, 2021 and permitted June 15, 2022. The second largest is a 122-unit, 44,330 square-foot hotel/dormitory/shelter (R-1) building submitted by Dreygo Development and filed by Chris O’Connor with plans filed October 19, 2013 and permitted April 3, 2015.

The majority, or 92 percent of the 1.6 million square feet of built space are office buildings, with retail buildings next occupying 8 percent of the space.

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