Magna signs $145M refi loan with PIMCO for hotel in Garment District, debt cut from $185M

Magna Hospitality Group through the entity Ny 36th Street Operating V LLC as borrower signed a refi loan with lender PIMCO through the entity Pcred II Lending II LLC valued at $145 million for the hotel building at 338 West 36th Street in Garment District, Manhattan.
The deal closed on December 23, 2021 and was recorded on January 18, 2022. The prior lender was Deutsche Bank which held debt that had an original loan amount of $185 million.
The property has 197,027 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $735 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 22, 2019, for $274.3 million.
The signatory for Magna Hospitality Group was Gregory Weingart. The signatory for PIMCO was Devin Chen.
The 197,027-square-foot property generated revenue of $27 million or $137 per square foot, according to the most recent income and expense figures.

(121192066)The DOB issued a new construction (NB) initial temporary certificate of occupancy for the building with 570 residential units on January 24, 2019. (121192066) Plans for a 570-unit, 168,113 square-foot R-1 were filed on November 26, 2014 and were permitted on August 10, 2016.
PCRED is PIMCO’s real estate fund.
In Garment District, the majority, or 69 percent of the 53 million square feet of built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 4.1 times the average sales volume in the city with $1.1 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Garment District has had very little major development activity relative to other neighborhoods.It had 561,900 square feet of commercial construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.
On the tax block, the majority, or 43 percent of the 1.6 million square feet of built space are office buildings, with hotel buildings next occupying 33 percent of the space.
The owners according to the Department of Housing Preservation and Development includes Renee Gauvin, head officer and Anthony Canna, site manager. The business entity is Ny 36th Street Operating V Llc.
Within a 400-foot radius of 338 West 36th Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on March 19, 2020 for the $8.2 million renovation of 62,632-square-foot B building with N/A residential units at 315 West 35th Street.
Of those seven items, six were loans above $5 million totaling $174 million. The most recent of the six was Mayflower Business Group which borrowed $34 million from Shanghai Commercial Bank secured by the 17,420-square-foot, 28-unit hotel (H1) on 319 West 35th Street on December 28, 2021.

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