Lone Star Funds buys $22.7M note secured by SYU Properties’s Penn Plaza office

Lone Star Funds through the entity Lsred7 Size Loan Trust 2024 bought a note with an original principal of $22.7 million from Flagstar Bank secured by SYU Properties’s two-unit office building (O6) at 247 West 30th Street in Penn Plaza, Manhattan.
The deal closed on February 26, 2025 and was recorded on March 31, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $22.7 million.The property has 60,397 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $zero 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 December 30, 2013, for $31.8 million. The signatory for SYU Properties was Simon Alishaev. The signatory for Lone Star Funds was Laura P. Sims.

Prior sales and revenue

The 60,397-square-foot property generated revenue of $2.4 million or $39 per square foot, according to the most recent income and expense figures.

The property

The office building with 2 residential units in Penn Plaza has 60,397 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,934 square feet. The lot is irregular. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $13.8 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 $1,250 in ECB penalties and $4,050 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 31, 2012. 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 Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has 1.3 times the average sales volume among other neighborhoods with $347.6 million in sales volume in the last two years and is the 23rd highest in Manhattan. For development, Penn Plaza is the 10th most active neighborhood among other neighborhoods. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 18 commercial properties representing 452,055 square feet of the 1,026,542 square feet. The largest owner is Feil Organization, followed by Hsp Real Estate and then Dennis Riese.
There are no active new building construction projects on this tax block.

The majority, or 70 percent of the 1 million square feet of built space are office buildings, with industrial buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that Syu Properties owned at least two commercial properties in New York City with 88,653 square feet and a city-determined market value of $18.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 81 percent of the 88,653 square feet of built space are specialty properties, with retail properties next occupying 19 percent of the space. They are all located in Queens.

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