Lexin Capital signs $47M refi for Hyatt hotel in Chelsea

Lexin Capital through the entity Lexin NY 815 LLC as borrower signed a refi loan with lender Metropolitan Commercial Bank valued at $47 million for the Hyatt House hotel (H1) at 815 Sixth Avenue in Chelsea, Manhattan.
The deal closed on March 14, 2023 and was recorded on March 29, 2023. The prior lender was Aareal Capital which held debt that had an original loan amount of $45 million.

The property has 73,497 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $639 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 November 14, 2011, for $24 million. The signatory for Lexin Capital was Metin Negrin. The signatory for Metropolitan Commercial Bank was Dennis Graham and Ross Dahmen.

The property

The 815 6th Avenue parcel has frontage of 49 feet and is 77 feet deep with a total lot size of 3,823 square feet. The zoning is C6-4X which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $18.6 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 received one DOB violation and $1,425 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 3, 2017. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Chelsea, the bulk, or 36 percent of the 52.6 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Chelsea has 2.1 times the average amount of major developments relative to other neighborhoods and is the 16th highest in Manhattan. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 39 commercial properties representing 275,168 square feet of the 1,571,487 square feet. The largest owner is Philip Y. Chun, followed by Lightstone Group and then Kash Group.
On the tax block, there were two new building construction projects totaling 142,049 square feet. The largest is a 350-unit, 112,341-square-foot R-1 building developed by Joseph Teichman with plans filed January 10, 2014 and permitted March 28, 2016. The second largest is a 37-unit, 29,708-square-foot R-2 building developed by Hasso Gulrajaney with plans filed May 13, 2015.

The majority, or 54 percent of the 1.6 million square feet of built space are office buildings, with hotel buildings next occupying 31 percent of the space.

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