Kahen Properties signs $57M construction loan for 81-unit project in Lenox Hill

Kahen Properties through the entity Third North Holdings LLC as borrower signed a new construction loan with lender TD Bank valued at $57 million for a development at 1026 Third Avenue in Lenox Hill, Manhattan.
On the lot, there is one active new building construction project for an 81-unit, 100,053-square-foot residential (R-2) building. The project M00683925 was submitted by Majid Kahen with plans filed March 4, 2022 and permitted June 21, 2023.
The deal closed on November 16, 2023 and was recorded on December 6, 2023.
The signatory for Kahen Properties was Majid Kahen. The signatory for TD Bank was Brian Terry.

The property

The zoning is C1-9 which allows for up to 2 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 $2.9 million. The most recent loan totaled $12 million and was provided by Signature Bank on July 12, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $625 in ECB penalties and $6,625 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of 18 of the 37 commercial properties representing 78,364 square feet of the 404,431 square feet. The largest owner is Vrahos LLC, followed by Kahen Properties and then Icon Realty Management.

The majority, or 56 percent of the 404,431 square feet of built space are office buildings, with walkup buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Kahen Properties owned at least 11 commercial properties with 317 residential units in New York City with 303,128 square feet and a city-determined market value of $60.3 million. (Market value is typically about 50% of actual value.) The portfolio has $61.5 million in debt, with top three lenders as Signature Bank, Santander Bank, and Societe Generale respectively. Within the portfolio, the bulk, or 62 percent of the 303,128 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. The bulk, or 47 percent of the built space, is in Manhattan, with Queens next at 34 percent of the space.

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