Jenel Real Estate signs $90M refi with Goldman for two properties in Garment District

Jenel Real Estate through the entity 34th Hotel Ventures LLC as borrower signed a refi loan with lender Goldman Sachs through the entity Goldman Sachs Bank USA valued at $90 million for two properties with 348 residential units including the 348-unit hotel building (H2) at 218 West 35th Street and the retail building (K4) at 223 West 34th Street, both in the Garment District, Manhattan.
The deal closed on January 28, 2025 and was recorded on February 5, 2025. The prior lender was Aareal Capital which held debt that had an original loan amount of $88 million.The two properties have 262,522 square feet of built space and 78,623 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $342 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 Jenel Real Estate was Jack Dushey.

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 218 West 35th Street.

Prior sales and revenue

The two properties with a total of 262,522 square feet of built space generated revenue of $57.8 million per year or $220 per square foot.

The property

The hotel building with 348 residential units in Garment District has 262,522 square feet of built space and 78,623 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 98 feet deep with a total lot size of 7,357 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $71 million. The most recent loan totaled $88 million and was provided by Aareal Capital on December 28, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $1,500 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a 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 $1 million on this tax lot.

The neighborhood

In Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 8.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On the tax block of 218 West 35th Street, PincusCo has identified the owners of 19 of the 27 commercial properties representing 1,516,925 square feet of the 2,262,329 square feet. The largest owner is Circle Realty Group, followed by Jenel Management and then Metlife.
On the tax block, there were three new building construction projects totaling 196,772 square feet. The largest is a 300-unit, 157,517 square-foot hotel/dormitory/shelter (R-1) building submitted by Chetrit Group and filed by Meyer Chetrit with plans filed April 5, 2016 and permitted August 21, 2017. The second largest is a 27,048 square-foot business (B) building submitted by Churchill Real Estate Holdings and filed by Jake Borden with plans filed April 26, 2016 and permitted December 10, 2018.

The majority, or 75 percent of the 2.3 million square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

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