Lender Columbia Pacific Advisors acquires Tribeca building following $11.5M loan default

Seattle-based Columbia Pacific Advisors through the entity CPIF 44 Hudson LLC, as the former lender, acquired from Prime Manhattan Development through the entity 44 Hudson Street JV LLC for the three-unit office building (O8) at 44 Hudson Street in Tribeca, Manhattan. The transfer price was set at from $11.9 million, slightly above the $11.5 million defaulted mortgage. The investment firm Chesterfield Faring Ltd. was a partner on the deal initially. It was unknown if it was still involved at the time of the ownership transfer.
Columbia Pacific Advisors was the senior lender with an $11.5 million loan provided after the seller bought the property on September 27, 2018, for $14 million.

Following an alleged default, Columbia filed a pre-foreclosure action (850027/2022) in January 2022.
This property transfer is an equity transfer through an August 15, 2023, UCC auction, in which Pacific made a credit bid of $5 million and took control of the equity formerly controlled by Grant Shapolsky’s Prime Manhattan Development. Chesterfield Faring at some point held an equity stake, according to RealFund.io documents. A Chesterfield Faring executive was copied on some emails discussing the loan default disclosed in the foreclosure filings.
The transfer closed on August 22, 2023 and was recorded on October 19, 2023. The property has 12,900 square feet of built space and 558 square feet of additional air rights for a total buildable of 13,454 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $925 and the price per buildable square foot is $887 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 Columbia Pacific Advisors was Brad Shain.

Brad Shain is a portfolio manager at Pacific.  The investment firm Chesterfield Faring. Ltd. was an investor and sought to provide funding according to a RealFund.IO website describing the financials of 44 Hudson, “For clarity, there is an $11.5 million first mortgage outstanding, a $1.5 million preferred equity investment (“PE”) made and invested by CFL (and its investors) [Chesterfield Faring Ltd.] in November 2019, and now this GP Loan for $1.0 million for a total of $14.0 million of senior financings secured by the Property. The Property is valued at $17.6 million currently for net equity of $3.6 million. Upon lease-up, the Property should be worth $19.1 million.”

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Columbia Pacific Advisors had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Prime Manhattan Development had not purchased any other properties and had not sold any properties over the same time period. The 12,900-square-foot property generated revenue of $812,708 or $63 per square foot, according to the most recent income and expense figures.

The property

The office building with 3 residential units in Tribeca has 12,900 square feet of built space and 558 square feet of additional air rights for a total buildable of 13,454 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 97 feet deep with a total lot size of 2,235 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The property is in the Tribeca West Historic District. The city-designated market value for the property in 2022 is $4.1 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $15.7 million commercial foreclosure concerning a loan filed on January 28, 2022, by Columbia Pacific Advisors against Grant Shapolsky. In addition, according to city public data, the property has received $3,000 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 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 2.2 times the average sales volume among other neighborhoods with $779.6 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Tribeca has 1.2 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the nine commercial properties representing 823,640 square feet of the 855,501 square feet. The largest owner is Stahl Real Estate, followed by Kenneth Maisler and then Asg Equities.
There are no active new building construction projects on this tax block.

The majority, or 96 percent of the 855,501 square feet of built space are office buildings, with elevator buildings next occupying 2 percent of the space.

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