Marx Development signs $88.8M refi with Madison Realty for Aloft hotel in Hudson Yards
Marx Development Group through the entity 37-11 Owner LLC as borrower signed a refi loan with lender Madison Realty Capital through the entity 450 11th Ave Lender LLC valued at $88.8 million for the 379-unit hotel building (H2) at 450 11th Avenue in Hudson Yards, Manhattan.
The deal closed on February 23, 2024 and was recorded on February 27, 2024. The prior lender was Mack Real Estate Group which held debt that had an original loan amount of $109.2 million.
The property has 270,400 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $328 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 May 18, 2007, for $45 million. The signatory for Marx Development Group was David Marx. The signatory for Madison Realty Capital was Urian Yap.
Yimby reported in December 2023 that exterior work on the tower was nearing completion.
The property
The hotel building with 379 units in Hudson Yards has 270,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 98 feet and is 100 feet deep with a total lot size of 9,875 square feet. The zoning is C6-4 which allows for up to 10 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 $76.5 million.
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 $5,000 in ECB penalties and $7,350 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 379-unit, 212,633 square-foot R-1 building. The project was submitted by Marx Development Group and filed by David Marx with plans filed July 12, 2018 and permitted June 8, 2021.
The neighborhood
In Hudson Yards, The majority, or 59 percent of the 16.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 22 percent of the space. In sales, Hudson Yards has had very little sales volume relative to other neighborhoods with $215.3 million in sales volume in the last two years. For development, Hudson Yards has 2.4 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of seven of the 11 commercial properties representing 849,558 square feet of the 955,260 square feet. The largest owner is Tishman Speyer, followed by Marx Development Group and then Lalezarian Properties.
On the tax block, there were two new building construction projects totaling 457,186 square feet. The largest is a 250-unit, 244,553 square-foot residential (R-2) building submitted by Lalezarian Properties and filed by Kevin Lalezarian with plans filed September 24, 2014 and permitted June 8, 2015. The second largest is a 379-unit, 212,633 square-foot hotel/dormitory/shelter (R-1) building submitted by Marx Development Group and filed by David Marx with plans filed July 12, 2018 and permitted June 8, 2021.
The majority, or 62 percent of the 955,260 square feet of built space are elevator buildings, with office buildings next occupying 35 percent of the space.
The borrower
The PincusCo database currently indicates that Marx Development Group owned at least 12 commercial properties with 408 residential units in New York City with 1,306,349 square feet and a city-determined market value of $297.2 million. (Market value is typically about 50% of actual value.) The portfolio has $784 million in debt, with top three lenders as Mack Real Estate Group, Rialto Capital, and Capital Funding Group respectively. Within the portfolio, the bulk, or 44 percent of the 1,306,349 square feet of built space are elevator properties, with specialty properties next occupying 33 percent of the space. The bulk, or 54 percent of the built space, is in Queens, with Manhattan next at 37 percent of the space.
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