Moinian Group signs $58M refi loan with MSD Partners for 250-unit FiDi development

Moinian Group through the entity 102-110 John Mazal LLC as borrower signed a refi loan with lender MSD Partners through the entity MSD RCOF Partners XXX, LLC valued at $58 million for the 250-unit development at 102-110 John Street in the Financial District, Manhattan.
The deal closed on April 11, 2022 and was recorded on April 27, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $40 million.

The signatory for Moinian Group was Joseph Moinian. The signatory for MSD Partners was Kenneth Gerold. Moinian Group also previously provided $18 million in funding with Michael Zarifpoor signing on the assignment.

The property

The 110 John Street parcel has frontage of 104 feet and is 124 feet deep with a total lot size of 14,258 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 city-designated market value for the property in 2022 is $39.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received two DOB violations, $23,750 in ECB penalties, and $24,950 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 250-unit, 213,017-square-foot R-2 building. The project was filed by the Moinian Group with plans filed March 27, 2018 and it has not been permitted yet.

The neighborhood

In Financial District, the majority, or 71 percent of the 85.8 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 18 percent of the space. In sales, Financial District has the 5th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Financial District has 1.5 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Manhattan. It had 1.3 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.

The block

On this tax block, PincusCo has identified the owners of five of the nine commercial properties representing 1,450,858 square feet of the 1,798,533 square feet. The largest owner is TF Cornerstone, followed by Lam Group and then Silverstein Properties. There are three active new building construction projects totaling 548,564 square feet. The largest is a 250-unit, 213,017-square-foot R-2 building developed by Moinian Group with plans filed March 27, 2018 and it has not been permitted yet.

The majority, or 82 percent of the 1.5 million square feet of built space are residential elevator buildings, with hotel buildings next occupying 18 percent of the space.

The borrower

The PincusCo database, which is incomplete, currently indicates that the Moinian Group owned at least 10 commercial properties with 1,106,413 square feet and a city-determined market value of $277.9 million. (Market value is typically about 50% of actual value.) The portfolio has $729.2 million in debt, with top three lenders as Bank of China, AIG, and Deutsche Bank respectively. Within the portfolio, the bulk, or 80 percent of the 1,106,413 square feet of built space are residential elevator properties, with hotel properties next occupying 11 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 33 percent of the space.

Surrounding

Within a 400-foot radius of 110 John Street, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, two were sales above $5 million totaling $362.5 million. The most recent of the two was Silverstein Properties which bought the 338,463-square-foot, 418-unit rental (D7) on 116 John Street for $247.5 million from Metro Loft Management on February 7, 2022.
Of those six items, four were loans above $5 million totaling $235.8 million. The most recent of the four was Silverstein Properties which borrowed $130 million from AIG secured by the 338,463-square-foot, 418-unit rental (D7) on 116 John Street on February 7, 2022.

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