KPG Funds signs $34.5M rehab construction loan with Thorofare Capital for commercial in Greenwich Village

KPG Funds through the entity 132 West 14th Street Ground Lessee LLC as borrower signed a rehab construction loan with lender Thorofare Capital through the entity Thorofare Asset Based Lending Reit Fund V, LLC valued at $34.5 million for the specialty building (W9) at 132 West 14th Street in Greenwich Village, Manhattan.
The deal closed on August 1, 2022 and was recorded on September 9, 2022. The prior lender was 360 Capital Management which held debt that had an original loan amount of $5 million. The property has 47,196 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $730 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 KPG Funds was Gregory Kraut. The signatory for Thorofare Capital was Edward Prosser. The borrower controls the property through a ground lease.

The property

The 132 West 14th Street parcel has frontage of 74 feet and is 103 feet deep with a total lot size of 7,692 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 $7.2 million.The most recent loan totaled $5 million and was provided by 360 Capital Management on July 28, 2021.

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 two DOB violations and $4,305 in OATH penalties in the last year.

The neighborhood

In Greenwich Village, the bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has the 9th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Greenwich Village has had very little major development activity relative to other neighborhoods.It had 685,418 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 16 of the 26 commercial properties representing 167,400 square feet of the 454,050 square feet. The largest owner is Izaki Group Investments, followed by BLDG Management and then KPG Funds.
There are no active new building construction projects on this tax block.

The majority, or 38 percent of the 364,121 square feet of built space are office buildings, with mixed-use buildings next occupying 22 percent of the space.

The borrower

The PincusCo database currently indicates that KPG Funds owned at least six commercial properties in New York City with 170,033 square feet and a city-determined market value of $71.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 170,033 square feet of built space are retail properties, with office properties next occupying 29 percent of the space. They are all located in Manhattan.

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