Magna Hospitality Group signs $68M refi loan with Western Alliance Bank for hotel in FiDi

Magna Hospitality Group through the entity AI Iv LLC as borrower signed a refi loan with lender Western Alliance Bank through the entity Western Alliance Bank valued at $68 million for the hotel building (H2) at 6-10 Water Street in Financial District, Manhattan.
The deal closed on October 25, 2022 and was recorded on November 3, 2022. The prior lender was M&T Bank which held debt that had an original loan amount of $66.9 million.The property has 102,407 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $664 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 March 13, 2014, for $44.2 million. The signatory for Magna Hospitality Group was Douglas C. Stevens. The signatory for Western Alliance Bank was Alan Pothast.

The property

The 6-10 Water Street parcel has frontage of 75 feet and is 51 feet deep with a total lot size of 3,889 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 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 $31.9 million.The most recent loan totaled $66.9 million and was provided by M&T Bank on July 31, 2019.

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 one DOB violation and $15,935 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 19, 2017. 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 Financial District, the majority, or 75 percent of the 81.3 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 7th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Financial District is the 5th most active neighborhood among other neighborhoods. It had 8.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 228,827 square feet of the 318,192 square feet. The two identified owners are Pan Am Equities and Magna Hospitality Group.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 149,131 square feet of built space are hotel buildings, with retail buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Magna Hospitality Group owned at least eight commercial properties in New York City with 1,204,571 square feet and a city-determined market value of $421.6 million. (Market value is typically about 50% of actual value.) The portfolio has $567.9 million in debt, with top three lenders as PIMCO, Blackstone Group, and Starwood Capital Group respectively. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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