MacArthur Holdings signs $6.3M refi for two retail properties in Hell’s Kitchen

MacArthur Holdings through the entity Dee Cee Associates LLC as borrower signed a refi loan with lender Apple Bank for Savings valued at $6.3 million for two retail and office properties (O5) at 258-268 West 44th Street in Hell’s Kitchen, Manhattan.
The deal closed on February 27, 2023 and was recorded on March 13, 2023. The prior lender was M&T Bank which held debt that had an original loan amount of $6.3 million.The two properties have 64,287 square feet of built space and 85,976 square feet of additional air rights for a total buildable of 150,300 square feet according to PincusCo analysis of city data. The loan price per built square foot is $98 and the price per buildable square foot is $42 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 MacArthur Holdings was David Katz. The signatory for Apple Bank for Savings was Cynthia Wang.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 258-260 West 44th Street.

Prior sales and revenue

The two properties with a total of 64,287 square feet of built space generated revenue of $4.2 million per year or $66 per square foot.

The property

The 258-260 West 44th Street parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 10,030 square feet. The lot is irregular. The zoning is C6-4 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 $11.9 million.The most recent loan totaled $6.3 million and was provided by M&T Bank on August 12, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation and $400 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Hell’s Kitchen, the bulk, or 39 percent of the 41.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.9 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Hell’s Kitchen has 3.9 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Manhattan. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 258-260 West 44th Street, PincusCo has identified the owners of six of the 11 commercial properties representing 1,156,422 square feet of the 1,707,018 square feet. The largest owner is PIMCO, followed by Solil Management and then Second Stage Theater.
There are no active new building construction projects on this tax block.

The majority, or 66 percent of the 1.1 million square feet of built space are office buildings, with elevator buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that MacArthur Holdings owned at least two commercial properties in New York City with 20,998 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7 million in debt, borrowed from Dime Community Bank. Within the portfolio, the bulk, or 69 percent of the 20,998 square feet of built space are retail properties, with walkup properties next occupying 31 percent of the space. The bulk, or 69 percent of the built space, is in Brooklyn, with Manhattan next at 31 percent of the space.

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