Lehmann Maupin gallery affiliate signs $18.2M refi loan with Bank of Montreal in Chelsea

An affiliate of the Lehmann Maupin gallery through the entity LM Gallery Realty L.P. as borrower signed a refi loan with lender Bank of Montreal valued at $18.2 million for the property at 503 West 24th Street in Chelsea, Manhattan.
The deal closed on May 5, 2022 and was recorded on May 26, 2022. The prior lender was Ladder Capital which held debt that had an original loan amount of $18.2 million. The property has 11,187 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,623 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 April 20, 2018, for $27 million. The signatory for Lehmann Maupin was Jude Coard. The signatory for Bank of Montreal was Michael Birajiclian. This is for the Rachel Lehmann and David Maupin-owned Lehmann Maupin gallery.

The property

The 503 West 24th Street parcel has a total lot size of 11,187 square feet. The city-designated market value for the property in 2022 is $3.3 million.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 19, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot. On the tax lot, there was a condominium project filed with the address 503 West 24th Street and the name 503 West 24th Street Condominium on July 14, 2015. The principals of the sponsor, VHS 239 LLC, was Moshe Shuster.

The block

On this tax block, PincusCo has identified the owners of four of the 20 commercial properties representing 100,378 square feet of the 491,248 square feet. The largest owner is Feil Organization, followed by Pace Gallery and then Luisa Mercedes Paez Lorenzo. There is one active new building construction project totaling 41,382 square feet. It is a five-unit, 41,382-square-foot R-2 building developed by Ran Korolik with plans filed September 9, 2014 and permitted September 14, 2015.

The majority, or 49 percent of the 475,130 square feet of built space are office buildings, with retail buildings next occupying 26 percent of the space.

Surrounding

Within a 400-foot radius of 503 West 24th Street, PincuscCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, three were sales above $5 million totaling $68.5 million. The most recent of the three was Safehold Inc. which bought the 109,795-square-foot, 112-unit rental (D8) on 500 West 23rd Street for $46.5 million from Brick family on August 9, 2021.
Of those five items, two were loans above $5 million totaling $87.6 million. The most recent of the two was Pace Gallery which borrowed $5.6 million from JPMorgan Chase secured by the 3,950-square-foot, one-unit retail building (K1) on 510 West 25th Street on January 6, 2022.

Direct link to Acris document. link