Madison Realty signs $105M construction loan with G4 Capital for condo project in Greenwich Village

Madison Realty Capital through the entity Fifth Avenue Owners Group LLC as borrower signed a new construction loan with lender G4 Capital Partners through the entity G4 18244, LLC valued at $105 million for the 20-unit residential elevator project (D9) at 14 Fifth Avenue in Greenwich Village, Manhattan.

On the lot, there is one active new building construction project for a 18-unit, 89,623 square-foot R-2 building. The project was developed by Allen Konstam with plans filed December 6, 2019 and permitted September 27, 2022. On the tax lot, the most recent condominium plan was filed by Fifth Avenue Owners Group LLC to create 14 residential units in a building at 16 Fifth Avenue in Greenwich Village, New York, called Sixteen Fifth Avenue Condominium, according to an May 6, 2022 submission to the New York State Attorney General.The principals of the sponsor, Fifth Avenue Owners Group LLC, were Brian Shatz and Joshua Zegen.

The deal closed on December 22, 2022 and was recorded on January 9, 2023. The prior lender was ConnectOne Bank which held debt that had an original loan amount of $29.6 million.
The owner bought the property on February 6, 2015, for $27.5 million. The signatory for Madison Realty Capital was Brian Shatz. The signatory for G4 Capital Partners was Jason Behfarin.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Julia Rodriguez, head officer. The business entity is Fifth Avenue Owners Group Llc. The 16,872-square-foot property generated revenue of $826,104 or $49 per square foot, according to the most recent income and expense figures.

The property

The 14 5th Avenue parcel has frontage of 52 feet and is 100 feet deep with a total lot size of 5,255 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $3.9 million.The most recent loan totaled $29.6 million and was provided by ConnectOne Bank on December 30, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $13,125 in ECB penalties and $13,125 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of 14 of the 43 commercial properties representing 326,341 square feet of the 630,224 square feet. The largest owner is Solil Management, followed by Sol Goldman Investments and then Sandy Realty.
On the tax block, there was one new building construction project filed totaling 89,623 square feet. It is an 18-unit, 89,623-square-foot R-2 building developed by Allen Konstam with plans filed December 6, 2019 and permitted September 23, 2022.

The majority, or 45 percent of the 629,374 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that Madison Realty Capital owned at least 64 commercial properties in New York City with 2,295,082 square feet and a city-determined market value of $365.5 million. (Market value is typically about 50% of actual value.) The portfolio has $914.1 million in debt, with top three lenders as Signature Bank, Athene Annuity And Life Company, and FTLP LLC respectively. Within the portfolio, the bulk, or 56 percent of the 2,295,082 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 36 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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