MAG Partners signs $145M construction loan refi with hedge fund for 480-unit project in Chelsea

MAG Partners through the entity 241 West 28th Street Owner LLC as borrower signed a refi loan with lender Elliott Investment Management, a private fund manager, through the entity Manchester Securities Corp. valued at $145 million for the 480-unit residential elevator building (D6) at 241-251 West 28th Street in Chelsea, Manhattan.

MAG Partners filed a new building project for a 480-unit, 351,185 square-foot R-2 building submitted by MAG Partners and filed by Susi Yu with plans filed September 16, 2019 and permitted May 18, 2021.

The deal closed on June 20, 2023 and was recorded on June 30, 2023. The prior lender was Madison Realty Capital which held debt that had an original loan amount of $145 million.

The signatory for MAG Partners was MaryAnne Gilmartin. The signatory for Elliott Investment Management was Elliot Greenberg. Elliott Investment Management is an investment management firm affiliated with Paul Singer. The loan refinances a 2022 $145 million construction loan Madison Realty Capital gave MAG Partners.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Susi Yu, head officer and Calynne Oyolokor, officer. The business entities are Firstservice Residential and 241 West 28th Street.

The property

The residential elevator building with 480 residential units in Chelsea has 431,428 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 149 feet and is 197 feet deep with a total lot size of 29,477 square feet. The lot is irregular. The zoning is M1-6D which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $26.7 million. The most recent loan totaled $137.5 million and was provided by Madison Realty Capital on December 21, 2021.

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 $4,800 in ECB penalties and $6,550 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of seven of the 21 commercial properties representing 807,426 square feet of the 1,660,370 square feet. The largest owner is Walter & Samuels, followed by Paul Kopatsis and then MAG Partners.
On the tax block, there were five new building construction projects totaling 1,139,243 square feet. The largest is a 480-unit, 351,185 square-foot residential (R-2) building submitted by MAG Partners and filed by Susi Yu with plans filed September 16, 2019 and permitted May 18, 2021. The second largest is a 323-unit, 258,285 square-foot residential (R-2) building submitted by Edison Properties and filed by Gary Dorin with plans filed December 2, 2014 and permitted April 16, 2015.

The majority, or 47 percent of the 1.7 million square feet of built space are office buildings, with elevator buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that MAG Partners owned at least 11 commercial properties with 2,050 residential units in New York City with 482,000 square feet and a city-determined market value of $55.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 90 percent of the 482,000 square feet of built space are elevator properties, with walkup properties next occupying 7 percent of the space. They are all located in Manhattan.

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