Lalezarian Properties signs $37M refi in Hudson Square, adding $10M

Lalezarian Properties through the entity Charlton Management LLC as borrower signed a refi loan with lender Wells Fargo valued at $37 million for two properties including the 16-unit residential walkup building (C4) at 100 Charlton Street in Hudson Square, Manhattan and development building (V1) at 102 Charlton Street in Hudson Square, Manhattan. The new financing added $10.5 million in new debt.
The deal closed on June 28, 2022 and was recorded on July 15, 2022. The prior lender was Wells Fargo which held debt that had an original loan amount of $26.5 million. The two properties have 6,656 square feet of built space and 42,352 square feet of additional air rights for a total buildable of 49,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $5,558 and the price per buildable square foot is $755 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 Lalezarian Properties was Kevin Lalezarian. The signatory for Wells Fargo was Sarah Chivi.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 100 Charlton Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Kevin Lalezarian, head officer and David Sani, officer. The business entity is Charlton Management Llc. Out of the two properties, one with a total of 6,656 square feet of built space generated revenue of $346,987 per year.

The property

The 100 Charlton Street parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,400 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.8 million.The most recent loan totaled $20.5 million and was provided by Wells Fargo on June 26, 2017.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation and $450 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 67-unit, 59,404-square-foot R-2 building. The project was developed by Kevin Lalezarian with plans filed October 28, 2015 and permitted July 11, 2019.

The block

On the tax block of 100 Charlton Street, PincusCo has identified the owners of eight of the 19 commercial properties representing 375,034 square feet of the 1,335,219 square feet. The largest owner is DivcoWest, followed by Fortuna Realty Group and then Ennismore. There are two active new building construction projects totaling 286,905 square feet. The largest is a 67-unit, 59,404-square-foot R-2 building developed by Kevin Lalezarian with plans filed October 28, 2015 and permitted July 11, 2019. The second largest is a 170-unit, 227,501-square-foot R-2 building developed by David Kronman with plans filed November 10, 2016 and permitted January 22, 2018.

The majority, or 54 percent of the 1.3 million square feet of built space are office buildings, with residential elevator buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Lalezarian Properties owned at least 11 commercial properties in New York City with 763,309 square feet and a city-determined market value of $235.8 million. (Market value is typically about 50% of actual value.) The portfolio has $482.9 million in debt, with top three lenders as JPMorgan Chase, New York Community Bank, and Wells Fargo respectively. Within the portfolio, the bulk, or 91 percent of the 763,309 square feet of built space are elevator properties, with walkup properties next occupying 7 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Brooklyn next at 43 percent of the space.

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