L+M, Goldman Sachs, Taconic sign $172.3M construction loan for 473-unit project in Inwood

L+M Development Partners, Goldman Sachs, and Taconic Partners through the entity Inwood Lot 9 Development Associates LLC as borrower signed a new construction loan for bonds issued by the NYS Housing Finance Agency valued at $172.3 million for the 473-unit, mixed-use project at 407 West 206th Street also known as 430 West 207th Street in Inwood, Manhattan.
The deal closed on August 4, 2022 and was recorded on August 25, 2022. The property has 34,000 square feet of built space and 326,722 square feet of additional air rights for a total buildable of 360,892 square feet according to PincusCo analysis of city data. The loan price per built square foot is $5,066 and the price per buildable square foot is $477 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 L+M Development Partners, Goldman Sachs, and Taconic Partners was David Dishy. The signatory for NYS Housing Finance Agency was Julie M. Behrens. L+M Development Partners, Taconic Partners and Goldman Sach’s Urban Investment Group are the developers. L+M and Taconic signed a 99-year ground lease as tenants in June 2022 valued at $22.2 million.  The New York State Housing Finance Agency issued taxable and tax-exempt Housing Revenue Bonds Series 2022, and Wells Fargo Municipal Capital Strategies bought the tax-exempt bonds and Wells Fargo bought the taxable bonds. The project is a 473-unit development including affordable housing and 17,083 square feet of gross retail space and 16,214 square feet of gross commercial space.

Prior sales and revenue

The 34,000-square-foot property generated revenue of $1.3 million or $39 per square foot, according to the most recent income and expense figures.

The property

The 430 West 207th Street parcel has frontage of 300 feet and is 199 feet deep with a total lot size of 59,949 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.5 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, $1,250 in ECB penalties, and $1,250 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 470-unit, 536,269-square-foot R-2 building. The project was developed by Colleen Wenke with plans filed October 21, 2021 and it has not been permitted yet.

The neighborhood

In Inwood, the bulk, or 44 percent of the 14.9 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 33 percent of the space. In sales, Inwood has near average sales volume among other neighborhoods with $368.7 million in sales volume in the last two years and is the 27th highest in Manhattan. For development, Inwood has 1.8 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing zero square feet of the 75,078 square feet. The identified owner is L+M Development Partners.
There are two active new building construction projects totaling 755,342 square feet. The largest is a 470-unit, 536,269-square-foot R-2 building developed by Colleen Wenke with plans filed October 21, 2021 and it has not been permitted yet. The second largest is a 194-unit, 219,073-square-foot R-2 building developed by David Dishy with plans filed October 14, 2021 and it has not been permitted yet.

The majority, or 75 percent of the 75,078 square feet of built space are retail buildings, with walkup buildings next occupying 25 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 22,264,878 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 22,264,878 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 36 percent of the space.
The PincusCo database currently indicates that Taconic Partners owned at least 34 commercial properties in New York City with 2,920,930 square feet and a city-determined market value of $485.1 million. (Market value is typically about 50% of actual value.) The portfolio has $986 million in debt, with top three lenders as Upper Manhattan Empowerment, Union Labor Life Insurance Company, and LoanCore Capital respectively. Within the portfolio, the bulk, or 44 percent of the 2,920,930 square feet of built space are office properties, with walkup properties next occupying 39 percent of the space. The bulk, or 51 percent of the built space, is in Bronx, with Manhattan next at 49 percent of the space.
The PincusCo database currently indicates that Goldman Sachs owned at least six commercial properties in New York City with 2,315,262 square feet and a city-determined market value of $651.7 million. (Market value is typically about 50% of actual value.) The portfolio has $57 million in debt, borrowed from USAA Real Estate. Within the portfolio, the bulk, or 93 percent of the 2,315,262 square feet of built space are office properties, with rental condo properties next occupying 5 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Brooklyn next at 7 percent of the space.

Direct link to Acris document. link