MRR Development signs $170M construction loan with Bank OZK for 145-unit development in Midtown East
MRR Development through the entity Mrr 1326 LLC as borrower signed a new construction loan with lender Bank OZK valued at $170 million for the development project at 126 East 57th Street in Midtown East, Manhattan.
On this lot, there is one active new building construction project for a 145-unit, 174,532 square-foot residential (R-2) building. The project was developed by Rony Attia of MRR Development with plans filed August 20, 2021.
The loan closed on December 2, 2022 and was recorded on December 13, 2022. The prior lender was Israel Discount Bank which held debt that had an original loan amount of $10 million.
The signatory for MRR Development was Rotem Rosen. The signatory for Bank OZK was Cliffton Hill. This is the 19th largest construction loan given this year.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $15,625 in ECB penalties and $15,675 in OATH penalties in the last year.
The neighborhood
In Midtown East, the majority, or 82 percent of the 61.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.3 billion in sales volume in the last two years. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 15.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.
The block
On the tax block of 126 East 57th Street, PincusCo has identified the owners of 18 of the 33 commercial properties representing 499,885 square feet of the 1,767,140 square feet. The largest owner is Spitzer, followed by Solil Management and then BLDG Management.
On the tax block, there were two new building construction projects totaling 285,185 square feet. The largest is a 151-unit, 110,653-square-foot I-2 building developed by Sarah Hawkins with plans filed March 2, 2017 and permitted June 5, 2018. The second largest is a 145-unit, 174,532-square-foot R-2 building developed by Rony Attia with plans filed August 20, 2021 and permitted May 13, 2022.
The majority, or 49 percent of the 1.8 million square feet of built space are office buildings, with hotel buildings next occupying 24 percent of the space.
The borrower
The PincusCo database currently indicates that MRR Development owned at least 11 commercial properties in New York City with 27,760 square feet and a city-determined market value of $25.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 54 percent of the 27,760 square feet of built space are retail properties, with walkup properties next occupying 24 percent of the space. They are all located in Manhattan.
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