Mequity signs $43M refi loan with QuadReal for self-storage in Flatiron District

Mequity Companies through the entity Mequity E. 21st St. Owner LLC as borrower signed a refi loan with lender QuadReal Property Group through the entity Qr Real Estate Capital Reit LLC valued at $43 million for the self-storage building (E7) at 41-47 East 21st Street in Flatiron District, Manhattan.
The deal closed on December 17, 2024 and was recorded on December 26, 2024. The prior lender was Cerberus Capital Management which held debt that had an original loan amount of $35.1 million. The property has 61,957 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $694 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 26, 2019, for $32.2 million. The signatory for Mequity Companies was William H. Marsh Jr.. The signatory for QuadReal Property Group was Derek Richter.

The property

The industrial building in Flatiron District has 61,957 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 101 feet and is 98 feet deep with a total lot size of 9,990 square feet. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $15.6 million. The most recent loan totaled $35.1 million and was provided by Cerberus Capital Management on January 20, 2021.

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 two DOB violations and $650 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 21, 2024. 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 Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 2.1 times the average sales volume among other neighborhoods with $529.3 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Flatiron District has 2.6 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 2.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 22 commercial properties representing 548,796 square feet of the 852,781 square feet. The largest owner is Centaur Properties, followed by Pan Am Equities and then Michael Grunberg.
There are no active new building construction projects on this tax block.

The majority, or 52 percent of the 852,781 square feet of built space are office buildings, with elevator buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Mequity Companies owned at least two commercial properties in New York City with 113,810 square feet and a city-determined market value of $22.7 million. (Market value is typically about 50% of actual value.) The portfolio has $35.1 million in debt, borrowed from Cerberus Capital Management. Within the portfolio, the bulk, or 54 percent of the 113,810 square feet of built space are industrial properties, with office properties next occupying 46 percent of the space. They are all located in Manhattan.

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