LeFrak signs $23M refi with Equitable for apartment building in Sutton Place

LeFrak through the entity 417 East Realty Limited Partnership as borrower signed a refi loan with lender Equitable Financial Life Insurance Company valued at $23 million for the 125-unit apartment building (HS) the Sutton Marquis at 417 East 57th Street also known as 410 East 58th Street, in Sutton Place, Manhattan.
The deal closed on August 15, 2024 and was recorded on August 23, 2024. The prior lender was Series 2021-KF126 which held debt that had an original loan amount of $22.5 million.The property has 105,734 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $217 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 LeFrak was Arnold S. Lehman. The signatory for Equitable Financial Life Insurance Company was J. David Morris.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Joseph Rooney, head officer and Margaret Broda, officer. The business entities are Estates NY Real Estate Services Llc and 417 East Realty Limited Partnership.

The property

The hotel building with 125 residential units in Sutton Place has 105,734 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 59 feet and is 201 feet deep with a total lot size of 7,636 square feet. The lot is irregular. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $18.8 million. The most recent loan totaled $22.5 million and was provided by M&T Realty Capital Corporation on September 30, 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 received $3,650 in ECB penalties and $3,950 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 Sutton Place, The majority, or 70 percent of the 5.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 8 percent of the space. In sales, Sutton Place has the 41st highest sale turnover among other neighborhoods in Manhattan with $40.8 million in sales volume in the last two years. For development, Sutton Place has had very little major development activity relative to other neighborhoods.It had 25,965 square feet of commercial and multi-family construction under development in the last two years, which represents 0.50 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 257,744 square feet of the 571,745 square feet. The largest owner is A&E Real Estate Holdings, followed by LeFrak and then Vipin Garg.
On the tax block, there was one new building construction project filed totaling 441,240 square feet. It is a 121-unit, 441,240 square-foot residential (R-2) building submitted by Gamma Real Estate and filed by Mikhail Khlyavich with plans filed December 28, 2016 and permitted April 28, 2017.

The majority, or 73 percent of the 571,745 square feet of built space are elevator buildings, with hotel buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that LeFrak owned at least 60 commercial properties with 9,604 residential units in New York City with 10,771,371 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 89 percent of the 10,771,371 square feet of built space are elevator properties, with office properties next occupying 10 percent of the space. The bulk, or 60 percent of the built space, is in Queens, with Manhattan next at 33 percent of the space.

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