L+M, Dasha Zhukova’s Ray, get $60M construction loan with PCCP for 222-unit project in East Harlem

L+M Development Partners, Ray Community, and Dasha Zhukova through the entity 2033 National Black Theatre Way LLC as borrower were given a new construction loan with lender PCCP through the entity PCCP Credit X Reit-Sub Holdco, LLC valued at $60 million for the development at 2033 Fifth Avenue in East Harlem, Manhattan. L+M is building a 222-unit building on the site.
The deal closed on June 17, 2022 and was recorded on July 13, 2022. The property has 58,000 square feet of built space and 111,937 square feet of additional air rights for a total buildable of 169,860 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,034 and the price per buildable square foot is $353 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 June 18, 2020, for $32 million. The signatory for L+M Development Partners, Ray Community, and Dasha Zhukova was David Dishy of L+M. The property is co-owned by Dasha Zhukova through her Ray Community.

The property

The 2023 5th Avenue parcel has frontage of 199 feet and is 85 feet deep with a total lot size of 16,986 square feet. The zoning is C4-7 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 $8.8 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 $6,150 in ECB penalties and $6,300 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 222-unit, 261,568-square-foot R-2 building. The project was developed by Lisa Gomez with plans filed June 22, 2021 and it has not been permitted yet.

The neighborhood

In East Harlem, the majority, or 53 percent of the 60.9 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 22 percent of the space. In sales, East Harlem has 1.9 times the average sales volume among other neighborhoods with $608.9 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, East Harlem has 3.9 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Manhattan. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 25 commercial properties representing 127,927 square feet of the 367,111 square feet. The largest owner is Dasha Zhukova, followed by Elysee Investment Company and then Neighborhood Restore. There are two active new building construction projects totaling 273,481 square feet. The largest is a 21-unit, 11,913-square-foot R-2 building developed by Wendy Hewlett with plans filed April 13, 2016 and permitted September 13, 2021. The second largest is a 222-unit, 261,568-square-foot R-2 building developed by Lisa Gomez with plans filed June 22, 2021 and it has not been permitted yet.

the majority, or 26 percent of the 387,361 square feet of built space are specialty buildings, with residential walkup buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that L+M Development Partners owned at least 276 commercial properties in New York City with 22,189,168 square feet and a city-determined market value of $2.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.8 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 73 percent of the 22,189,168 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.
The PincusCo database currently indicates that Ray Community owned at least one commercial property in New York City with 9,495 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Manhattan.
The PincusCo database currently indicates that Dasha Zhukova owned at least one commercial property in New York City with 9,495 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Manhattan.

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