Milstein Properties signs $143M loan with Signature Bank for rental, walkup in Lenox Hill

Milstein Properties through the entity 200/210 East 65 LLC as borrower signed a loan with lender Signature Bank valued at $143 million for 175 unsold condo units at 200 East 65th Street and the 30-unit residential walkup building (C4) at 336 East 71st Street in Lenox Hill, Manhattan.
The deal closed on August 30, 2022 and was recorded on September 19, 2022.

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 200 East 65th Street.

The neighborhood

In Lenox Hill, the bulk, or 35 percent of the 51.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 28 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $3.2 billion in sales volume in the last two years. For development, Lenox Hill has 1.2 times the average amount of major developments relative to other neighborhoods and is the 21st highest in Manhattan. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 200 East 65th Street, PincusCo has identified the owners of two of the 11 commercial properties representing 134,125 square feet of the 334,728 square feet. The two identified owners are Sonesta International Hotels and United Management.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 109,921 square feet of built space are hotel buildings, with office buildings next occupying 0 percent of the space.

Surrounding

Within a 400-foot radius of 200 East 65th Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which Sonesta International Hotels bought the 109,921-square-foot, one-unit hotel (HS) on 215 East 64th Street for $71.6 million from Denihan Hospitality Group on May 6, 2022.
Of those three items, two were loans above $5 million totaling $489.6 million. The most recent of the two was Sonesta International Hotels which borrowed $202.7 million from Carval Investors secured by the 179,142-square-foot, one-unit hotel (HS) on 215 East 64th Street and three other properties on May 13, 2022.

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