Lone Star buys $220M in debt secured by Olnick, RXR, Handler, Shamie properties

Texas-based Lone Star Funds bought four loans from Flagstar Bank with an aggregate original principal of $220 million secured by properties owned by Olnick Organization, RXR Realty, Handler Real Estate Organization and Shamie family.
The purchase of a loan does not necessarily imply distress. For example, at the same time as Lone Star Loans purchased these loans, it also acquired an $80 million note from Flagstar Bank secured by a Stellar Management property at 220 Fifth Avenue, and then Loan Star signed a loan modification directly with Stellar, as PincusCo reported today.

In the largest of the four deals, Lone Star Funds through the entity Lsref7 Size Loan Trust 2024 bought a note with an original principal of $77 million from Flagstar Bank secured by Olnick Organization’s office building (O6) at 130 Fifth Avenue in the Flatiron District, Manhattan.
The deal closed on February 26, 2025 and was recorded on March 27, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $77 million. The property has 120,000 square feet of built space according to a PincusCo analysis of city data.
The signatory for Olnick Organization was Seth Schochet of the Olnick Organization. Olnick signed this loan in 2022.

In the second deal, Lone Star Funds through the entity Lsref7 Size Loan Trust 2024 bought a note with an original principal of $66 million from Flagstar Bank secured by RXR Realty’s office building (O5) at 37-02 Northern Boulevard in Long Island City, Queens.
The deal closed on February 26, 2025 and was recorded on March 27, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $66 million. The property has 318,000 square feet of built space according to a PincusCo analysis of city data.
The signatory for RXR Realty was Jason Barnett . The signatory for Lone Star Funds was Laura Sims. RXR Realty borrowed $66 million from New York Community Bank in 2014 to finance the $110 million purchase of the Standard Motors Building building that year.

In the third, Lone Star Funds through the entity Lsref7 Size Loan Trust 2024 bought a note with an original principal of $52 million from Flagstar Bank secured by Handler Real Estate Organization’s office building (O6) at 263 West 38th Street in Garment District, Manhattan.
The deal closed on February 26, 2025 and was recorded on March 27, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $52 million. The property has 146,377 square feet of built space according to a PincusCo analysis of city data.
The signatory for Handler Real Estate Organization at the time of the New York Community Bank loan was Scott Galin.

In the fourth, Lone Star Funds through the entity Lsref7 Sixe Loan Trust 2024 bought a note with an original principal of $25 million from Flagstar Bank secured by Joseph Shamie and Sam Shamie’s office building (O6) at 114 West 26th Street in Chelsea, Manhattan.
The deal closed on February 26, 2025 and was recorded on March 27, 2025. The property has 97,005 square feet of built space according to a PincusCo analysis of city data.
The Shamies bought the property on June 14, 2004, from Yeshiva University for $22.7 million. The signatory for Lone Star Funds was Laura Sims. Joseph Shamie and Sam Shamie lead Delta Children’s Products Corp., a manufacturer and retailer.

Prior sales and revenue

The 120,000-square-foot property generated revenue of $11.8 million or $98 per square foot, according to the most recent income and expense figures.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 2.1 times the average sales volume among other neighborhoods with $568.5 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, Flatiron District has 2.8 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 11 commercial properties representing 222,008 square feet of the 476,510 square feet. The largest owner is Olnick Organization, followed by Tarsat Prop Llc and then Alfa Development.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 476,510 square feet of built space are office buildings, with mixed-use buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Olnick Organization owned at least 10 commercial properties with 2,319 residential units in New York City with 2,783,639 square feet and a city-determined market value of $383.6 million. (Market value is typically about 50% of actual value.) The portfolio has $192 million in debt, with top three lenders as First Republic Bank, New York Community Bank, and Capital One respectively. Within the portfolio, the bulk, or 90 percent of the 2,783,639 square feet of built space are elevator properties, with office properties next occupying 10 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Bronx next at 30 percent of the space.
The PincusCo database currently indicates that Seth Schochet owned at least one commercial property with 127 residential units in New York City with 131,476 square feet and a city-determined market value of $32.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Manhattan.

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