Midtown Equities, Rockwood sign $125M refi with Deutsche Pfandbriefbank for FiDi office

Midtown Equities and Rockwood Capital through the entity One Broadway Owner, LLC as borrower signed a refi loan with lender Deutsche Pfandbriefbank valued at $125 million for the office building (O6) at 1 Broadway in the Financial District, Manhattan.
The deal closed on October 11, 2023 and was recorded on November 20, 2023. The prior lender was Deutsche Pfandbriefbank which held debt that had an original loan amount of $123.9 million.
The property has 206,480 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $605 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 Midtown Equities and Rockwood Capital was David Streicher. The signatory for Deutsche Pfandbriefbank was Vincent Clauss and Sarah Kraft. Midtown Equities and Rockwood Capital bought the building for $139.5 million in 2018.

The property

The office building in Financial District has 206,480 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 96 feet and is 171 feet deep with a total lot size of 17,024 square feet. The lot is irregular. The zoning is C5-5 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $34.6 million. The most recent loan totaled $11.1 million and was provided by Deutsche Pfandbriefbank on October 11, 2023.

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 $14,435 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 206,480 square-foot B building. The project was submitted by Steven Donahue with plans filed January 4, 2019 and permitted March 24, 2021.

The neighborhood

In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 11.3 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 one of the three commercial properties representing 206,480 square feet of the 1,450,101 square feet. The identified owner is Midtown Equities.
There are no active new building construction projects on this tax block.

All properties are office.

The borrower

The PincusCo database currently indicates that Midtown Equities owned at least five commercial properties with 121 residential units in New York City with 550,858 square feet and a city-determined market value of $128.6 million. (Market value is typically about 50% of actual value.) The portfolio has $300.5 million in debt, with top three lenders as ACORE Capital, Signature Bank, and Centennial Bank respectively. Within the portfolio, the bulk, or 47 percent of the 550,858 square feet of built space are office properties, with specialty properties next occupying 29 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 38 percent of the space.
The PincusCo database currently indicates that Rockwood Capital owned at least two commercial properties in New York City with 1,197,052 square feet and a city-determined market value of $199.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are office properties. They are all located in Manhattan.

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