Maguire Capital buys $13.2M note secured by Madison Avenue retail

Maguire Capital Group through the entity 958 Madison LLC bought a note with an original principal of $13.2 million from Webster Bank secured by Yosef Soleymani and Joseph Soufer’s four-unit mixed-use retail building (K4) at 958 Madison Avenue in Lenox Hill, Manhattan, just north of East 75th Street.
The deal closed on June 27, 2024 and was recorded on July 12, 2024. The prior lender was Webster Bank which held debt that had an original loan amount of $13.2 million. The property has 8,875 square feet of built space.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Rozita Shay, head officer and Joseph Soufer, officer. The business entity is 958 Madison Llc.

The property

The mixed-use building with 4 residential units in Lenox Hill has 8,875 square feet of built space and 14,861 square feet of additional air rights for a total buildable of 23,740 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 95 feet deep with a total lot size of 2,374 square feet. The zoning is C5-1 which allows for up to 4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Upper East Side Historic District. The city-designated market value for the property in 2022 is $8.1 million. The most recent loan totaled $13.2 million and was provided by Sterling National Bank on September 27, 2019.

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

For the tax lot building, it received its initial certificate of occupancy on December 17, 2014. 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 34 percent of the 53.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 30 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.3 billion in sales volume in the last two years. For development, Lenox Hill is the 7th most active neighborhood among other neighborhoods. It had 5.9 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 six of the 19 commercial properties representing 178,237 square feet of the 517,633 square feet. The largest owner is Reuben Brothers, followed by Nathan Benelyahou and then MRR Development.
There are no active new building construction projects on this tax block.

The majority, or 42 percent of the 517,633 square feet of built space are elevator buildings, with hotel buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Joseph Soufer owned at least two commercial properties with 20 residential units in New York City with 35,438 square feet and a city-determined market value of $21.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 77 percent of the 35,438 square feet of built space are retail properties, with walkup properties next occupying 23 percent of the space. They are all located in Manhattan.

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