Kew Management signs $51M refi for office in Flatiron District

Kew Management through the entity 1133 St. James LLC as borrower signed a refi loan with lender Flagstar Bank valued at $51 million for the office building (O6) at 1129 Broadway in Flatiron District, Manhattan.
The deal closed on January 21, 2023 and was recorded on October 5, 2023. The prior lender was Flagstar Bank which held debt originated in 2018 that had an original loan amount of $56 million.
The property has 183,168 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $278 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 Kew Management was Leslie Spira Lopez. The signatory for Flagstar Bank was Daniel M. Bagatta.

The property

The office building in Flatiron District has 183,168 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 116 feet and is 109 feet deep with a total lot size of 13,897 square feet. The lot is irregular. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Madison Square North Historic District. The city-designated market value for the property in 2022 is $52.1 million.

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 $8,600 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 $1 million on this tax lot.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has the 10th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Flatiron District has 2.5 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 17 commercial properties representing 442,557 square feet of the 1,078,857 square feet. The two identified owners are William Bouton and Rose Associates.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 1.1 million square feet of built space are office buildings, with elevator buildings next occupying 41 percent of the space.

The borrower

The PincusCo database currently indicates that Kew Management owned at least one commercial property in New York City with 35,000 square feet and a city-determined market value of $13.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7.6 million in debt, borrowed from Apple Bank for Savings. The portfolio consists of at least a single mixed-use property. It is located in Manhattan.

Direct link to Acris document. link