Lightstone Group ups debt to $290.1M at Moxy Times Square

Lightstone Group through the entity 485 Seventh Avenue Associates LLC as borrower signed a refi loan with the loan trustee Reznik Paz Nevo Trusts valued at $290.1 million for the Moxy Times Square hotel at 485 Seventh Avenue at the corner of 36th Street in the Garment District, Manhattan.
The deal closed on January 29, 2025 and was recorded on February 4, 2025. The prior lender was Goldman Sachs which held debt that had an original loan amount of $262.2 million.
The financing is composed of two tax parcels, one a hotel condominium unit and a related tax parcel that together have 202,301 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,434 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 Lightstone Group was Joseph E. Teichman. The signatory for Reznik Paz Nevo Trusts was Hillel Lazarus.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 485 7th Avenue.

The property

The hotel condo in Garment District has 202,301 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 202,301 square feet. The city-designated market value for the property in 2022 is $106.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 8th highest sale turnover among other neighborhoods in the city with $1.2 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 8.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On the tax block of 485 7th Avenue, PincusCo has identified the owners of eight of the 17 commercial properties representing 831,948 square feet of the 1,583,624 square feet. The largest owner is Empire State Realty Trust, followed by 60 Guilders and then Sioni Group.
On the tax block, there were two new building construction projects totaling 413,120 square feet. The largest is a 300-unit, 368,790 square-foot residential (R-2) building submitted by Sioni Group and filed by Jack Yadidi with plans filed December 15, 2021 and permitted January 9, 2024. The second largest is a 122-unit, 44,330 square-foot hotel/dormitory/shelter (R-1) building submitted by Dreygo Development and filed by Chris O’Connor with plans filed October 19, 2013 and permitted April 3, 2015.

The majority, or 92 percent of the 1.6 million square feet of built space are office buildings, with retail buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Lightstone Group owned at least 34 commercial properties with 1,938 residential units in New York City with 2,338,149 square feet and a city-determined market value of $325.9 million. (Market value is typically about 50% of actual value.) The portfolio has $2 billion in debt, with top three lenders as Reznik Paz Nevo Trusts, JLL, and Goldman Sachs respectively. Within the portfolio, the bulk, or 74 percent of the 2,338,149 square feet of built space are elevator properties, with hotel properties next occupying 21 percent of the space. The bulk, or 45 percent of the built space, is in Bronx, with Manhattan next at 28 percent of the space.

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