Naftali signs $140M construction loan for 62-unit condo project in Lenox Hill

Naftali Group through the entity 255 East 77th Street Owner LLC as borrower signed a new construction loan with lender JPMorgan Chase through the entity Jpmorgan Chase Bank, National Association valued at $140 million for the 62-unit residential elevator building (D6) at 255 East 77th Street in Lenox Hill, Manhattan.
On the lot, there is one active new building construction project, M00798756, for a 62-unit, 190,065-square-foot residential (R-2) building. The project was submitted by Michael Witek with plans filed September 8, 2022 and permitted December 1, 2023. On the tax lot, the most recent condominium plan was filed by 255 East 77th St. Owner LLC to create 62 residential units and 1 commercial unit in a building at 255 East 77th Street in Lenox Hill, Manhattan, called 255 East 77th Street Condominium that has a $531.6 million sellout, according to an December 18, 2023 submission to the New York State Attorney General. The principal of the sponsor, 255 East 77th St. Owner LLC, was Michael Naftali.

The loan closed on November 22, 2024 and was recorded on November 27, 2024. The loan price per zoning square foot is $736 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 December 3, 2021, for $63.6 million. The signatory for Naftali Group was Michael Naftali.

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 $9,085 in ECB penalties and $9,935 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of 14 of the 21 commercial properties representing 202,498 square feet of the 264,383 square feet. The largest owner is Naftali Group, followed by Sky Management and then S.W. Management.
On the tax block, there was one new building construction project, which is the Naftali Group project.

The majority, or 76 percent of the 264,383 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Naftali Group owned at least 12 commercial properties with 825 residential units in New York City with 859,112 square feet and a city-determined market value of $171 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Bank Hapoalim, Bank OZK, and HSBC Bank respectively. Within the portfolio, the bulk, or 65 percent of the 859,112 square feet of built space are elevator properties, with development properties next occupying 27 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

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