KPG Funds signs $9M refi with Ready Capital for retail in Tribeca

KPG Funds through the entity 30 Warren Retail Condo Owner LLC as borrower signed a refi loan with lender Ready Capital through the entity Readycap Commercial, LLC valued at $9 million for the retail condo at 102 Chambers Street in Tribeca, Manhattan.
The deal closed on May 9, 2023 and was recorded on May 16, 2023. The prior lender was Ready Capital which held debt that had an original loan amount of $8.8 million.The property has 3,086 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $2,906 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 January 6, 2021, for $12 million. The signatory for KPG Funds was Gregory Kraut. The signatory for Ready Capital was Melissa Perez.

The property

The retail condo in Tribeca has 3,086 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 3,086 square feet. The city-designated market value for the property in 2022 is $821,733. The most recent loan totaled $8.8 million and was provided by Ready Capital on January 6, 2021.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 20, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot. On the tax lot, the most recent condominium plan was filed by CAPE CHURCH ASSOCIATES, LLC to create 23 residential units and 3 commercial units in a building at 30 Warren Street in Financial District, Manhattan, called 30 Warren Condominiumthat has a $71.8 million sellout, according to an March 24, 2015 submission to the New York State Attorney General. The principals of the sponsor, CAPE CHURCH ASSOCIATES, LLC, were David Kronman and Craig Wood.

The neighborhood

In Tribeca, The bulk, or 47 percent of the 15.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Tribeca has 1.9 times the average sales volume among other neighborhoods with $674.6 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Tribeca has 3.1 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the eight commercial properties representing 49,185 square feet of the 95,128 square feet. The largest owner is Ralph Braha, followed by Joel Hammer and then Flatiron Real Estate Advisors.
On the tax block, there were two new building construction projects totaling 312,669 square feet. The largest is a 279-unit, 236,339 square-foot residential (R-2) building submitted by Ralph Braha and filed by B.J. Roe with plans filed December 30, 2016 and it has not been permitted yet. The second largest is a 86-unit, 76,330 square-foot residential (R-2) building submitted by Ralph Braha and filed by Roe Robert with plans filed November 13, 2014 and it has not been permitted yet.

The majority, or 57 percent of the 95,128 square feet of built space are mixed-use buildings, with office buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Kpg Funds owned at least three commercial properties with one residential unit in New York City with 129,211 square feet and a city-determined market value of $60.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 129,211 square feet of built space are retail properties, with specialty properties next occupying 37 percent of the space. They are all located in Manhattan.

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