Muss Development signs $26M refi with Nationwide Life for 90-unit rental in East Harlem

Muss Development through the entity 119 Third Fee Owner, LLC as borrower signed a refi loan with lender Nationwide Life Insurance Company valued at $26 million for the 90-unit residential elevator building (D7) at 2182-2190 Third Avenue in East Harlem, Manhattan.
The deal closed on March 2, 2023 and was recorded on March 8, 2023. The prior lender was Comm 2014-LC15 which held debt that had an original loan amount of $27 million.
The property has 98,184 square feet of built space and 45,164 square feet of additional air rights for a total buildable of 143,380 square feet according to PincusCo analysis of city data. The loan price per built square foot is $264 and the price per buildable square foot is $181 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 Muss Development was Jason A. Muss. The signatory for Nationwide Life Insurance Company was Michael C. Beidelman.

Muss Development in New York City owns approximately 17 mostly office and retail properties with a total of about 1.5 million square feet, according to an analysis of PincusCo data.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ken Konfong, head officer and Jason Muss, officer. The business entity is 119 Third Fee Owner LLC. The 98,184-square-foot property generated revenue of $3.9 million or $40 per square foot, according to the most recent income and expense figures.

The property

The 2182-2190 3rd Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 14,338 square feet. The zoning is C4-6 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2011.0 and expires in 2036.0. The city-designated market value for the property in 2022 is $18 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 $430 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of nine of the 18 commercial properties representing 503,004 square feet of the 620,567 square feet. The largest owner is Vitus Group, followed by New York City Housing Authority and then NYC Department of Education.
On the tax block, there was one new building construction project filed totaling 73,253 square feet. It is a 57-unit, 73,253-square-foot R-2 building developed by Matthew Degen with plans filed November 23, 2021 and permitted May 25, 2022.

The majority, or 48 percent of the 620,567 square feet of built space are specialty buildings, with elevator buildings next occupying 43 percent of the space.

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