MJ Orbach Associates signs $29.5M refi with Ladder for office in Garment District

MJ Orbach Associates through the entity West 39-260 Realty LLC as borrower signed a refi loan with lender Ladder Capital through the entity Ladder Capital Finance LLC valued at $29.5 million for the office building (O6) at 260 West 39th Street in Garment District, Manhattan.
The deal closed on March 24, 2026 and was recorded on March 30, 2026. The prior lender was Flagstar Bank which held debt that had an original loan amount of $55 million. The property has 154,516 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $190 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 MJ Orbach Associates was Michael Orbach . The signatory for Ladder Capital was David Traitel .

Prior sales, articles and revenue

The 154,516-square-foot property generated revenue of $5.4 million or $35 per square foot, according to the most recent income and expense figures.

The property

The office building in Garment District has 154,516 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 102 feet and is 98 feet deep with a total lot size of 10,121 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $22 million. Ladder Capital on March 24, 2026 bought a loan with an original principal of $55.0M from Flagstar Bank signed by Mitchel Baffa , secured by 260 West 39th Street, when owned by MJ Orbach Associates .

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 $1,725 in OATH penalties in the last year.

Development

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 Garment District, The majority, or 69 percent of the 52.3 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Garment District has the 10th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 11.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space. There were 269 pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of eight of the 23 commercial properties representing 1,015,995 square feet of the 1,800,808 square feet. The largest owner is Savitt Partners, followed by Handler Real Estate Organization and then Mj Orbach Associates.
There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 1.8 million square feet of built space are office buildings, with industrial buildings next occupying 15 percent of the space.

The borrower

The PincusCo database currently indicates that Mj Orbach Associates owned at least four commercial properties with 136 residential units in New York City with 304,216 square feet and a city-determined market value of $41.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 51 percent of the 304,216 square feet of built space are office properties, with elevator properties next occupying 44 percent of the space. The bulk, or 51 percent of the built space, is in Manhattan, with Brooklyn next at 49 percent of the space.

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