Joginder Sharma signs $37.5M construction loan with State Bank of Texas for hotel project in Garment District
Joginder Sharma through the entity Onboard Hospitality LLC as borrower signed a new construction loan with lender State Bank of Texas through the entity State Bank Of Texas valued at $37.5 million for the hotel building (H2) at 34 West 38th Street in Garment District, Manhattan.
The deal closed on September 30, 2022 and was recorded on October 20, 2022. The prior lender was Popular Bank which held debt that had an original loan amount of $10.3 million.
On the lot, there is one active new building construction project for a 200-unit, 65,961 square-foot R-1 building. The project was filed by William Obeid with plans filed July 19, 2013 and permitted July 12, 2018.
The owner bought the property on May 1, 2017, for $19.2 million. The signatory for Joginder Sharma was Joginder Sharma. The signatory for State Bank of Texas was Sushi Patel.
The property
The 34 West 38th Street parcel has frontage of 44 feet and is 98 feet deep with a total lot size of 6,616 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 $4 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 two DOB violations, $17,560 in ECB penalties, and $17,560 in OATH penalties in the last year.
The neighborhood
In Garment District, the majority, or 70 percent of the 51.9 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 2.6 times the average sales volume among other neighborhoods with $922.9 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Garment District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 35 of the 102 commercial properties representing 361,297 square feet of the 2,227,299 square feet. The largest owner is Heritage Realty Services, followed by Marriott Vacations Worldwide and then Kamber Management.
On the tax block, there was one new building construction project filed totaling 65,961 square feet. It is a 200-unit, 65,961-square-foot R-1 building filed by William Obeid with plans filed July 19, 2013 and permitted July 12, 2018.
The majority, or 78 percent of the 1.3 million square feet of built space are office buildings, with hotel buildings next occupying 18 percent of the space.
The borrower
The PincusCo database currently indicates that Joginder Sharma owned at least three commercial properties in New York City with 56,034 square feet and a city-determined market value of $10.1 million. (Market value is typically about 50% of actual value.) The portfolio has $12.5 million in debt, borrowed from Emerald Creek Capital. Within the portfolio, the bulk, or 100 percent of the 56,034 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. The bulk, or 73 percent of the built space, is in Queens, with Manhattan next at 27 percent of the space.
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