Naftali Group signs $177.5M construction loan for 45-unit UWS condo
Naftali Group through the entity 211 West 84th St Owner LLC as borrower signed a new construction loan with lender Bank Hapoalim valued at $177.5 million for the 45-unit condominium project at 211 West 84th Street at Broadway, on the Upper West Side of Manhattan. The debt is composed of a $48.6 million land loan and $128.9 million for a building loan and a project loan.
On the lot, there is one active new building construction project for a 45-unit, 154,598 square-foot residential (R-2) building. The project was submitted by Naftali Group and filed by Michael Witek with plans filed May 12, 2022 and permitted September 19, 2023.
On the tax lot, the most recent condominium plan was filed by 211 West 84th St Owner LLC to create 45 residential units and 1 commercial unit in a building at 211 West 84th Street in Upper West Side, Manhattan, called 211 West 84th Street Condominium, according to an June 1, 2023 submission to the New York State Attorney General. The principal of the sponsor, 211 West 84th St Owner LLC, was Michael Naftali.
The deal closed on March 8, 2024 and was recorded on March 15, 2024. The prior lender was Bank Hapoalim which held debt that had an original loan amount of $48.6 million.
The property has 104,810 square feet of built space according to a PincusCo analysis of city data. The loan price per development square foot is $1,148 per the PincusCo analysis, based on the $177.5 million of debt. (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 June 9, 2021, for $70.2 million. The signatory for Naftali Group was Michael Naftali. This financing is $128.9 million in new construction financing on top of existing debt of $46.8 million, which Bank Hapoalim gave in 2023.
This is the Naftali Group’s second large construction loan this month. The developer signed a $238 million construction loan with Bank OZK on March 1 for a trio of projects in Williamsburg.
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 four DOB violations, $15,750 in ECB penalties, and $13,600 in OATH penalties in the last year.
The block
On this tax block, PincusCo has identified the owners of 10 of the 12 commercial properties representing 320,459 square feet of the 477,624 square feet. The largest owner is Time Equities, followed by Sackman Enterprises and then Pine Management.
On the tax block, there were two new building construction projects totaling 262,874 square feet. The largest is a 45-unit, 154,598 square-foot residential (R-2) building submitted by Naftali Group and filed by Michael Witek with plans filed May 12, 2022 and permitted September 19, 2023. The second largest is a 162-unit, 108,276 square-foot institutional (I-2) building submitted by Hines and filed by Sarah Hawkins with plans filed April 22, 2019 and permitted January 15, 2021.
The majority, or 75 percent of the 477,624 square feet of built space are elevator buildings, with walkup buildings next occupying 25 percent of the space.
The borrower
The PincusCo database currently indicates that Naftali Group owned at least 12 commercial properties with 371 residential units in New York City with 859,112 square feet. The portfolio has $1.3 billion in debt, with top three lenders as Bank OZK, HSBC Bank, and Bank Hapoalim 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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