Lam Group, Exact Capital sign $148M refi loan with Aareal Capital in Harlem

Lam Group and Exact Capital Group through the entity 233 West 125th Street Danforth, LLC as borrower signed a refi loan with lender Aareal Capital valued at $148 million for five commercial condominium units that comprise the mixed-use property Victoria Tower at 233 West 125th Street in Harlem, Manhattan.
The deal closed on July 5, 2024 and was recorded on July 11, 2024. The prior lender was Silver Point Capital which held debt that had an original loan amount of $167.5 million.
The 28-story building is 280,000 square feet.
The signatory for Lam Group and Exact Capital Group was Kin Chung Lam. The signatory for Aareal Capital was John Tung and Margaret Laffler.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

The block

On the tax block of 233 West 125th Street, PincusCo has identified the owners of two of the 13 commercial properties representing 479,809 square feet of the 875,122 square feet. The two identified owners are Jem Realty Management and Exact Capital Group.
On the tax block, there were three new building construction projects totaling 475,707 square feet. The largest is a 191-unit, 375,187 square-foot residential (R-2) building submitted by Lam Group and filed by Keith Lam with plans filed September 24, 2014 and permitted December 28, 2015. The second largest is a 82-unit, 69,512 square-foot residential (R-2) building submitted by Joel Weiss and filed by Joel Weiss with plans filed January 26, 2022 and permitted April 8, 2022.

The majority, or 50 percent of the 875,122 square feet of built space are elevator buildings, with office buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that Lam Group owned at least eight commercial properties with 192 residential units in New York City with 1,432,846 square feet and a city-determined market value of $400.3 million. (Market value is typically about 50% of actual value.) The portfolio has $500.1 million in debt, with top three lenders as Shanghai Commercial Bank, H.I.G. Capital, and Deutsche Bank respectively. Within the portfolio, the bulk, or 70 percent of the 1,432,846 square feet of built space are hotel properties, with elevator properties next occupying 28 percent of the space. The bulk, or 81 percent of the built space, is in Manhattan, with Brooklyn next at 19 percent of the space.

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