Jonis Realty signs $22.5M refi for 3 walkup properties in East Village

Jonis Realty through the entity Second At St. Marks Partners, L.P. as borrower signed a refi loan with lender Signature Bank valued at $22.5 million for three residential walkup properties including the 20-unit residential walkup building (C7) at 131 2nd Avenue in East Village, Manhattan, 22-unit residential walkup building (C7) at 127 2nd Avenue in East Village, Manhattan, and 22-unit residential walkup building (C7) at 129 2nd Avenue in East Village, Manhattan.
The deal closed on December 15, 2022 and was recorded on December 22, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $25 million. The three properties have 42,310 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $531 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 Jonis Realty was Joshua D. Halegua. The signatory for Signature Bank was Mark Kraehling.

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 131 2nd Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ira Fishman, head officer and Martin Newman, officer. The business entities are Citi Urban Mgmt Corp and Second At St Marks Partners Lp. The three properties with a total of 42,310 square feet of built space generated revenue of $3.3 million per year or $78 per square foot.

The property

The 131 2nd Avenue parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the East Village / Lower East Side Historic District. The city-designated market value for the property in 2022 is $6.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, $655 in ECB penalties, 56 housing violations, $11,285 in OATH penalties, and three housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block of 131 2nd Avenue, PincusCo has identified the owners of 15 of the 41 commercial properties representing 160,070 square feet of the 434,440 square feet. The largest owner is Premier Equities, followed by Viking Management and then Timothy D. O’Reilly.
On the tax block, there was one new building construction project filed totaling 39,308 square feet. It is a 68-unit, 39,308-square-foot R-1 building developed by John Pappas with plans filed October 27, 2014 and it has not been permitted yet.

The majority, or 71 percent of the 420,919 square feet of built space are walkup buildings, with mixed-use buildings next occupying 12 percent of the space.

The borrower

The PincusCo database, which is incomplete, currently indicates that Jonis Realty owned at least two commercial properties in New York City with 50,979 square feet and a city-determined market value of $18 million. (Market value is typically about 50% of actual value.) The portfolio has $21 million in debt, borrowed from First Republic Bank and First National Bank of Long Island. Within the portfolio, the bulk, or 58 percent of the 50,979 square feet of built space are walkup properties, with elevator properties next occupying 42 percent of the space. They are all located in Manhattan.

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