Joginder Sharma signs $12M refi loan with State Bank of Texas for three properties in NYC
Joginder Sharma through the entity 767 8th Avenue LLC as borrower signed a refi loan with lender State Bank of Texas through the entity State Bank Of Texas valued at $12 million for three properties including the hotel building (H4) at 154-10 South Conduit Avenue in Brookville, Queens, hotel building (H3) at 767 8th Avenue in Hell’s Kitchen, Manhattan, and development building (V1) at N/A 155th Street in Brookville, Queens.
The deal closed on August 5, 2024 and was recorded on August 12, 2024. The prior lender was Emerald Creek Capital which held debt that had an original loan amount of $12.5 million.The three properties have 56,034 square feet of built space and 11,166 square feet of additional air rights for a total buildable of 60,959 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $214 and the price per buildable square foot is $196 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 Joginder Sharma was Joginder Sharma. The signatory for State Bank of Texas was Melody Collins.
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 767 8th Avenue.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Joginder Sharma, head officer and Vk Sharma, officer. The business entity is 767 Holding Corp.
The property
The hotel building in Hell’s Kitchen has 56,034 square feet of built space and 11,166 square feet of additional air rights for a total buildable of 60,959 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is C6-4 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 $6.6 million. The most recent loan totaled $12.5 million and was provided by Emerald Creek Capital on June 21, 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 $625 in ECB penalties and $5,425 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 $1 million on this tax lot.
The neighborhood
In Hell’s Kitchen, The bulk, or 39 percent of the 40.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 2.2 times the average sales volume among other neighborhoods with $580.8 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Hell’s Kitchen has 3.9 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 4.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.
The block
On the tax block of 767 8th Avenue, PincusCo has identified the owners of 26 of the 49 commercial properties representing 510,456 square feet of the 719,316 square feet. The largest owner is Brusco Group, followed by Dalan Real Estate and then Vittorio Lattanzi.
There are no active new building construction projects on this tax block.
The majority, or 48 percent of the 719,316 square feet of built space are hotel buildings, with walkup buildings next occupying 32 percent of the space.
The borrower
The PincusCo database currently indicates that Joginder Sharma owned at least six commercial properties in New York City with 279,923 square feet and a city-determined market value of $66.3 million. (Market value is typically about 50% of actual value.) The portfolio has $116.2 million in debt, with top three lenders as State Bank of Texas, Allegiant Real Estate Capital, and Emerald Creek Capital respectively. Within the portfolio, the bulk, or 100 percent of the 279,923 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. The bulk, or 85 percent of the built space, is in Manhattan, with Queens next at 15 percent of the space.
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