Michael Jones signs $6.2M loan with Newtek Bank for two walkups in Grand Central

Michael E. Jones through the entity 113 Lexington Realty, LLC as borrower signed a initial loan with lender Newtek Bank through the entity Newtek Business Services Holdco 6, Inc. valued at $6.2 million for two residential walkup properties with 15 residential units including the eight-unit residential walkup building (C7) at 113 and 115 East 39th Street in Grand Central, Manhattan.
The deal closed on June 29, 2023 and was recorded on July 24, 2023. The two properties have 12,319 square feet of built space and 839 square feet of additional air rights for a total buildable of 13,168 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $507 and the price per buildable square foot is $474 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 signatory for Michael E. Jones was Michael E. Jones.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 115 East 39th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Jones, individual owner and Isaac Heimovits, agent. The business entity is 113 Lexingtonrealty. The two properties with a total of 12,319 square feet of built space generated revenue of $541,543 per year or $44 per square foot.

The property

The residential walkup building with 8 residential units in Grand Central has 12,319 square feet of built space and 839 square feet of additional air rights for a total buildable of 13,168 square feet according to a PincusCo analysis of city data. The parcel has frontage of 16 feet and is 98 feet deep with a total lot size of 1,646 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 $3.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations and $50 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 the tax block of 115 East 39th Street, PincusCo has identified the owners of 11 of the 35 commercial properties representing 747,495 square feet of the 1,544,916 square feet. The largest owner is Suppiah Kameshwara, followed by Steven Tatti and then Solil Management.
On the tax block, there were two new building construction projects totaling 42,209 square feet. The largest is a 16-unit, 21,903 square-foot residential (R-2) building submitted by Adam Gordon with plans filed January 30, 2020 and it has not been permitted yet. The second largest is a 40-unit, 20,306 square-foot hotel/dormitory/shelter (R-1) building submitted by Terence Cheng with plans filed October 10, 2017 and it has not been permitted yet.

The majority, or 76 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 16 percent of the space.

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