Kiska Developers signs $20M loan with BankUnited for hotel in Park Avenue South

Kiska Developers through the entity Mpa32 LLC as borrower signed a initial loan with lender BankUnited valued at $20 million for the hotel building (HS) at 114 East 32nd Street in Park Avenue South, Manhattan.
The deal closed on August 22, 2023 and was recorded on September 6, 2023. The property has 121,774 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $164 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 owner bought the property on February 14, 2012, for $20.6 million. The signatory for Kiska Developers was Stephen Warheit and Nariye Ercan Magden. The prior debt was $36 million but was paid off in December 2019.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Nuriye Magden, head officer and Calynne Oyolokor, officer. The business entities are Firstservice Residential and Mpa32, Inc.

The property

The hotel building in Park Avenue South has 121,774 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 78 feet and is 98 feet deep with a total lot size of 7,743 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $22.6 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 two DOB violations and $1,750 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 Park Avenue South, The majority, or 67 percent of the 9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 16 percent of the space. In sales, Park Avenue South has 1.3 times the average sales volume among other neighborhoods with $451.6 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Park Avenue South has 1.2 times the average amount of major developments relative to other neighborhoods and is the 23rd highest in Manhattan. It had 1.2 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 six of the 16 commercial properties representing 1,485,828 square feet of the 1,774,400 square feet. The largest owner is Zenon Chernyk, followed by Ogden Cap Properties and then Hakimian Organization.
On the tax block, there was one new building construction project filed totaling 27,219 square feet. It is a 27,219 square-foot business (B) building submitted by Woo Sung Lee with plans filed November 28, 2012 and permitted December 12, 2018.

The majority, or 55 percent of the 1.8 million square feet of built space are elevator buildings, with office buildings next occupying 37 percent of the space.

Direct link to Acris document. link