Maddd Equities signs $42.5M refi for grocery retail under Queensboro Bridge

Maddd Equities through the entity Maddd 550 Broad, LLC as borrower signed a refi loan with lender Lakeland Bank valued at $42.5 million for the specialty building (Y8) at 405 East 59th Street in Lenox Hill, Manhattan, under the Ed Koch Queensboro Bridge. The developer paid $42 million in 2020 for the master lease on the landmarked location.
The refi closed on June 29, 2023 and was recorded on July 10, 2023. The prior lender was the CMBS Series 2013-C16 which held debt that had an original loan amount of $33 million.
The property has 64,360 square feet of built space. The loan price per built square foot is $660 per the PincusCo analysis.
The signatory for Maddd Equities was Jorge Madruga. The signatory for Lakeland Bank was Robert Surovich.

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 not received any significant violations 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 neighborhood

In Lenox Hill, The bulk, or 35 percent of the 52 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.6 billion in sales volume in the last two years. For development, Lenox Hill has 2.9 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans 64,360 square feet on the block.The identified owner is Maddd Equities.
There are no active new building construction projects on this tax block.

All properties are specialty.

The borrower

The PincusCo database currently indicates that Maddd Equities owned at least 21 commercial properties with 22 residential units in New York City with 810,554 square feet and a city-determined market value of $175.4 million. (Market value is typically about 50% of actual value.) The portfolio has $242.9 million in debt, with top three lenders as NYC Housing Development Corporation, Sterling National Bank, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 37 percent of the 810,554 square feet of built space are office properties, with W3 properties next occupying 18 percent of the space. The bulk, or 59 percent of the built space, is in Bronx, with Manhattan next at 26 percent of the space.

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