L+M signs $38.6M loan with Lument for 120-unit rental in Harlem

L+M Development Partners through the entity HP West 116 Street Housing Dev. Fund Co. Inc. as borrower signed a loan with lender Lument through the entity Lument Real Estate Capital, LLC valued at $38.6 million for the 120-unit residential elevator building (D1) at 5 West 116th Street in Harlem, Manhattan.
The deal closed on March 31, 2023 and was recorded on April 11, 2023. The property has 106,008 square feet of built space and 79,919 square feet of additional air rights for a total buildable of 185,860 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $364 and the price per buildable square foot is $207 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 September 29, 2009, for $16.7 million.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development include Herminio Torres, head officer and Patrick Davidson, site manager. The business entities are C&C Apartment Management LLC and West 116th St Associates, Llc. The 106,008-square-foot property generated revenue of $4.1 million or $38 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 143 feet and is 201 feet deep with a total lot size of 37,172 square feet. The lot is irregular. The zoning is C4-5X which allows for up to 4 times floor area ratio (FAR) for commercial and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $20 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $625 in ECB penalties, 105 housing violations, $1,525 in OATH penalties, and two housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 153,632 square feet of the 203,822 square feet. The two identified owners are Kahen Properties and L+M Development Partners.
On the tax block, there was one new building construction project filed totaling 50,189 square feet. It is a 30-unit, 50,189 square-foot residential (R-2) building submitted by Azimuth Development Group and filed by Guido Subotovsky with plans filed December 22, 2017 and permitted February 12, 2020.

All properties are elevator.

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