Joseph Kazarnovsky signs $93.7M refi loan with Capital One for residential elevator in Hell’s Kitchen

Joseph Kazarnovsky through the entity Clinton Hudson Associates LLC as borrower signed a refi loan with lender Capital One valued at $93.7 million for the 235-unit residential elevator building (D3) at 535 West 51st Street in Hell’s Kitchen, Manhattan.
The deal closed on December 27, 2022 and was recorded on January 4, 2023. The prior lender was Series 2017-KF36 which held debt that had an original loan amount of $95 million. The property has 251,512 square feet of built space and 165,600 square feet of additional air rights for a total buildable of 417,119 square feet according to PincusCo analysis of city data. The loan price per built square foot is $372 and the price per buildable square foot is $224 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 Joseph Kazarnovsky was Joseph Kazarnovsky.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Joseph Kazarnovsky, head officer and Octavio Mancilla, officer. The business entity is Clinton Manor Associates Lp. The 251,512-square-foot property generated revenue of $11 million or $44 per square foot, according to the most recent income and expense figures.

The property

The 535 West 51st Street parcel has frontage of 365 feet and is 200 feet deep with a total lot size of 69,289 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $52.9 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 one DOB violation, five housing violations, and $300 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the nine commercial properties representing 247,294 square feet of the 686,670 square feet. The identified owner is AvalonBay Communities.
On the tax block, there was one new building construction project filed totaling 30,006 square feet. It is a N/A-unit, 30,006-square-foot A-1 building developed by Charles Marcus with plans filed September 24, 2014 and it has not been permitted yet.

The majority, or 73 percent of the 439,376 square feet of built space are elevator buildings, with walkup buildings next occupying 23 percent of the space.

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