Midtown Equities signs $60M refi loan with ACORE at Governors Island Ferry building

Midtown Equities through the entity 10 South Street LLC as borrower signed a refi loan with lender ACORE Capital through the entity Acore Capital Mortgage, LP valued at $60 million for the Governors Island Ferry building at 10 South Street in Manhattan.
The deal closed on May 6, 2022 and was recorded on June 7, 2022. The prior lender was ACORE Capital which held debt that had an original loan amount of $62 million.The property has 158,197 square feet of built space and 1,756,073 square feet of additional air rights for a total buildable of 1,915,020 square feet according to PincusCo analysis of city data. The loan price per built square foot is $379 and the price per buildable square foot is $31 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 was Jack Cayre. The signatory for ACORE Capital was David Homsher.

The property

The 10 South Street parcel has frontage of 311 feet and is 555 feet deep with a total lot size of 191,502 square feet. The lot is irregular. The zoning is C4-6 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $47.2 million.The most recent loan totaled $112 million and was provided by ACORE Capital on June 27, 2019.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $6.6 million money judgment concerning construction filed on August 31, 2021, by Midtown Equities against TEDESCHI USA. In addition, according to city public data, the property has received $8,750 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 158,197 square feet of the 470,043 square feet. The identified owner is Midtown Equities. There are no active new building construction projects on this tax block.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 10 South Street that occurred over the past 24 months.

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