Lightstone Group signs $55.3M initial loan with Sound Point for 86-unit UWS rental

Lightstone Group through the entity West 92nd Street Associates LLC as borrower signed an initial loan with lender Sound Point Capital Management through the entity Global Investment Fund I Fbo Tre Spcm Series II Po valued at $55.3 million for the 86-unit residential elevator building at 2481 Broadway in Upper West Side, Manhattan.
The deal closed on May 19, 2022 and was recorded on June 10, 2022. The property has 132,975 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $415 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 March 2, 2022, for $60 million. The signatory for Lightstone Group was Joseph E. Teichman. This is an initial senior loan for $47.45 million obtained two months after the $60 million acquisition of the property, and a rehab building loan for $7.85 million.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Adam Goodstein, head officer and Sam Taverez, site manager. The business entities are David Eisenstein and West 92nd Street Associates Llc.

The property

The 2481 Broadway parcel has frontage of 107 feet and is 125 feet deep with a total lot size of 13,250 square feet. The lot is irregular. The zoning is C4-6A which allows for up to 3.4 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 $19.2 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 two DOB violations, $18,750 in ECB penalties, 129 housing violations, $23,535 in OATH penalties, and one housing litigation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 17, 2012. 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 Upper West Side, the majority, or 68 percent of the 95.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 13 percent of the space. In sales, Upper West Side has the 8th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Upper West Side has 1.9 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 15 commercial properties representing 554,995 square feet of the 757,648 square feet. The largest owner is Acuity Capital Partners, followed by Stellar Management and then Lightstone Group. There is one active new building construction project totaling 48,935 square feet. It is a 20-unit, 48,935-square-foot R-2 building developed by Kathleen Urabni with plans filed July 6, 2017 and permitted June 19, 2019.

The majority, or 74 percent of the 1.1 million square feet of built space are residential elevator buildings, with hotel buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that Lightstone Group owned at least 39 commercial properties with 2,608,440 square feet and a city-determined market value of $396.5 million. (Market value is typically about 50% of actual value.) The portfolio has $806.1 million in debt, with top three lenders as Goldman Sachs, JPMorgan Chase, and Square Mile Capital Management respectively. Within the portfolio, the bulk, or 82 percent of the 2,608,440 square feet of built space are elevator properties, with hotel properties next occupying 13 percent of the space. The bulk, or 40 percent of the built space, is in Bronx, with Manhattan next at 37 percent of the space.

Surrounding

Within a 400-foot radius of 2481 Broadway, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Gibraltar Management Company bought the 5,279-square-foot, 11-unit rental (C5) on 257 West 91st Street for $5.3 million from Ronald Cherney on January 3, 2022.
Of those four items, three were loans above $5 million totaling $253 million. The most recent of the three was Adam America Real Estate which borrowed $100 million from Axos Bank secured by the 45-unit rental (D7) on 2503 Broadway on February 9, 2021.

Direct link to Acris document. link