Maxwelle Real Estate buys $5.5M note secured by its retail in Chelsea

Maxwelle Real Estate Group through the entity Maxwelle Capital, LLC bought a note with an original principal of $5.5 million from Comm 2014-UBS4 and servicer LNR Partners secured by Maxwelle Real Estate Group’s retail building (K2) at 357 West 16th Street in Chelsea, Manhattan.
The deal closed on September 23, 2024 and was recorded on October 17, 2024.

The property has 5,700 square feet of built space and 3,496 square feet of additional air rights for a total buildable of 9,200 square feet according to a PincusCo analysis of city data.
The owner acquired the property in February 2012 through a foreclosure auction, as an affiliate of the credit bidder. The signatory for Maxwelle Real Estate Group was Richard Weisfisch.

The property

The retail building in Chelsea has 5,700 square feet of built space and 3,496 square feet of additional air rights for a total buildable of 9,200 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 92 feet deep with a total lot size of 2,300 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.2 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 not received any significant violations in the last year.

Development

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 Chelsea, The bulk, or 35 percent of the 52.5 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 7th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Chelsea has 1.5 times the average amount of major developments relative to other neighborhoods and is the 21st highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 207,341 square feet of the 250,291 square feet. The largest owner is Bd Hotels, followed by David Fine and then Targo Capital Partners.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 250,291 square feet of built space are hotel buildings, with walkup buildings next occupying 34 percent of the space.

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