Joginder Sharma signs $42.7M refi for hotel in Garment District, ending foreclosure threat

Joginder Sharma through the entity Eros Management & Realty, LLC as borrower signed a refi loan with lender Allegiant Real Estate Capital through the entity Allegiant Capital Funding, LLC valued at $42.7 million for the hotel building (H2) at 345 West 35th Street in Garment District, Manhattan.
The property was involved in one lawsuit over the past two years. The suit was a $41.4 million commercial pre-foreclosure concerning a loan. The case was filed on December 2, 2022, by Series 2014-C21 and Greystone Servicing Company against Joginder Y. Sharma and John Sharma. In addition, according to city public data, the property has received $1,250 in ECB penalties and $7,575 in OATH penalties in the last year.
The deal closed on June 28, 2024 and was recorded on July 11, 2024. The prior lender was Series 2014-C21 which held debt that had an original loan amount of $47 million.
The property has 93,090 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $458 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 Allegiant Real Estate Capital was Randy Reiff.

The property

The hotel building in Garment District has 93,090 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 83 feet and is 98 feet deep with a total lot size of 8,228 square feet. The city-designated market value for the property in 2022 is $30.6 million.

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 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 2 times the average sales volume among other neighborhoods with $542.4 million in sales volume in the last two years and is the 16th highest in Manhattan. For development, Garment District is the 4th most active neighborhood among other neighborhoods. It had 6.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 12 of the 20 commercial properties representing 861,848 square feet of the 1,440,736 square feet. The largest owner is Weihong Hu, followed by Viking Management and then Raber Enterprises.
On the tax block, there were two new building construction projects totaling 118,485 square feet. The largest is a 166-unit, 59,250 square-foot hotel/dormitory/shelter (R-1) building submitted by Wei Hong Hu and filed by Wei Hong Hu with plans filed May 14, 2019 and permitted May 1, 2023. The second largest is a 151-unit, 59,235 square-foot hotel/dormitory/shelter (R-1) building submitted by Weihong Hu with plans filed August 20, 2016 and it has not been permitted yet.

The majority, or 46 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Joginder Sharma owned at least five commercial properties in New York City with 186,833 square feet and a city-determined market value of $35.8 million. (Market value is typically about 50% of actual value.) The portfolio has $73.5 million in debt, borrowed from State Bank of Texas and Emerald Creek Capital. Within the portfolio, the bulk, or 100 percent of the 186,833 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. The bulk, or 78 percent of the built space, is in Manhattan, with Queens next at 22 percent of the space.

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