Meadow Partners, Wharton Properties, sign $9.1M initial loan with Cerberus for 21-unit walkup in Greenwich Village

Meadow Partners and operating partner Wharton Properties through the entity 14 Bedford Owner LLC as borrower signed an initial loan with lender Cerberus Capital Management through the entity CRE II Lender Sub II, LLC valued at $9.1 million for the 21-unit residential walkup building (C7) at 14 Bedford Street in Greenwich Village, Manhattan.
The deal closed on November 17, 2023 and was recorded on November 22, 2023. The prior lender was Capital One which held debt that had an original loan amount of $5.1 million.The property has 12,860 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $707 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.)
Meadow Partners and Joseph Sutton of Wharton Properties bought the property on August 29, 2023, for $13.5 million. The signatory for Wharton Properties and Meadow Partners was Jeffrey Kaplan, managing partner of Meadow Partners. This is an initial loan following the purchase in August 2023. At the time PincusCo reported only Joseph Sutton of Wharton Residential, and affiliate of Wharton Properties, was the buyer, but now it was disclosed that Meadow Partners is a co-owner.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Laub, head officer and Nicky Sultana, site manager. The business entities are Bedford 14 LLC.

The property

The residential walkup building with 21 residential units in Greenwich Village has 12,860 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 38 feet and is 99 feet deep with a total lot size of 3,060 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Greenwich Village Historic District Extension II. The city-designated market value for the property in 2022 is $3.1 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 eight housing 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 block

On this tax block, PincusCo has identified the owners of nine of the 24 commercial properties representing 195,388 square feet of the 315,100 square feet. The largest owner is Wharton Properties, followed by Stonehenge NYC and then Maria Piazza.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 315,100 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Wharton Properties owned at least 86 commercial properties with 173 residential units in New York City with 3,761,491 square feet and a city-determined market value of $2 billion. (Market value is typically about 50% of actual value.) The portfolio has $705.8 million in debt, with top three lenders as Aareal Capital, JPMorgan Chase, and Valley National Bank respectively. Within the portfolio, the bulk, or 72 percent of the 3,761,491 square feet of built space are office properties, with retail properties next occupying 17 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.
The PincusCo database currently indicates that Meadow Partners owned at least 35 commercial properties with 405 residential units in New York City with 1,956,309 square feet and a city-determined market value of $447 million. (Market value is typically about 50% of actual value.) The portfolio has $657.3 million in debt, with top three lenders as Fortress Investment Group, Deutsche Pfandbriefbank, and Apollo Global Management respectively. Within the portfolio, the bulk, or 61 percent of the 1,956,309 square feet of built space are office properties, with elevator properties next occupying 15 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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