Moinian Group signs $147.5M loan modification with AIG for office in NoMad
Moinian Group through the entity 245 Fifth Owner LLC as borrower signed a loan modification with lender AIG through the entity American General Life Insurance Company valued at $147.5 million for the office building (O4) at 245 Fifth Avenue in NoMad, Manhattan. This amendment modifies the loan that had an original principal of $160 million which AIG provided in 2016.
The deal closed on May 4, 2023 and was recorded on May 9, 2023. The property has 258,639 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $570 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 owner bought the property on April 8, 2011, for $161.5 million. The signatory for Moinian Group was Joseph Moinian. The signatory for AIG was Jacob Baron.
Prior sales and revenue
The 258,639-square-foot property generated revenue of $21.5 million or $83 per square foot, according to the most recent income and expense figures.
The property
The office building in NoMad has 258,639 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 86 feet and is 125 feet deep with a total lot size of 11,100 square feet. The lot is irregular. The zoning is C5-2 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Madison Square North Historic District. The city-designated market value for the property in 2022 is $111.5 million.
Violations and lawsuits
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $860,262 money judgment concerning a office lease filed on March 11, 2022, by Moinian Group against Rosecliff Venture Partners. In addition, according to city public data, the property has received $6,250 in ECB penalties and $16,600 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 NoMad, The majority, or 66 percent of the 12.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 15 percent of the space. In sales, NoMad has 2.2 times the average sales volume among other neighborhoods with $767.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, NoMad has near average amount of major developments among other neighborhoods and is the 25th highest in Manhattan. It had 917,847 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one 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 four of the 10 commercial properties representing 1,246,603 square feet of the 1,559,775 square feet. The largest owner is Triumph Hotels, followed by Moinian Group and then Jamestown.
There are no active new building construction projects on this tax block.
The majority, or 81 percent of the 1.6 million square feet of built space are office buildings, with elevator buildings next occupying 12 percent of the space.
The borrower
The PincusCo database currently indicates that Moinian Group owned at least 13 commercial properties with 1,038 residential units in New York City with 1,890,414 square feet and a city-determined market value of $503.1 million. (Market value is typically about 50% of actual value.) The portfolio has $955 million in debt, with top three lenders as Bank of China, Deutsche Bank, and AIG respectively. Within the portfolio, the bulk, or 47 percent of the 1,890,414 square feet of built space are elevator properties, with office properties next occupying 45 percent of the space. The bulk, or 81 percent of the built space, is in Manhattan, with Brooklyn next at 19 percent of the space.
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