Namdar, Klosed Properties, Silber sign $18M rehab loan with Metropolitan Commercial for hotel in Upper West Side

Namdar Realty Group, Klosed Properties, Silber Investment Properties, and Ramin Abdolazadeh through the entity 2651 Broadway Bh LLC as borrower signed a land and rehab construction loan with lender Metropolitan Commercial Bank valued at $18.35 million for the hotel building at 2651 Broadway in Upper West Side, Manhattan.
The deal closed on April 8, 2022 and was recorded on April 28, 2022. The prior lender was 2651 Broadway Partners LLC which held debt that had an original loan amount of $7.6 million.The property has 36,730 square feet of built space and 8,400 square feet of additional air rights for a total buildable of 45,120 square feet according to PincusCo analysis of city data. The loan price per built square foot is $299 and the price per buildable square foot is $243 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 November 17, 2021, for $15.5 million. The signatory for Namdar Realty Group, Klosed Properties, Silber Investment Properties, and Ramin Abdolazadeh was Matthew Scheriff, Steven Kashanian, Aaron Etessami, and Ramin Abdolazadeh. Aaron Etessami is a senior vice president of Silber Investment Properties.

The property

The 2651 Broadway parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,000 square feet. The zoning is R9A which allows for up to 7.52 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.7 million.The most recent loan totaled $7.6 million and was provided by 2651 Broadway Partners LLC on November 17, 2021.

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 four DOB violations and $1,600 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 neighborhood

In Upper West Side, the majority, or 68 percent of the 95.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 13 percent of the space. In sales, Upper West Side has the 8th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Upper West Side has 1.9 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 1.8 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 seven of the 16 commercial properties representing 492,249 square feet of the 716,629 square feet. The largest owner is Argo Real Estate, followed by New York City Housing Authority and then Joseph Gorodischer. There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 769,503 square feet of built space are residential elevator buildings, with industrial buildings next occupying 6 percent of the space.

The borrower

The PincusCo database, which is incomplete, currently indicates that Namdar Realty Group owned at least 18 commercial properties with 444,597 square feet and a city-determined market value of $124.4 million. (Market value is typically about 50% of actual value.) The portfolio has $118.6 million in debt, with top three lenders as Benefit Street Partners, Signature Bank, and Ladder Capital respectively. Within the portfolio, the bulk, or 43 percent of the 444,597 square feet of built space are office properties, with residential elevator properties next occupying 27 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.
The PincusCo database, which is incomplete, currently indicates that Klosed Properties owned at least 12 commercial properties with 148,258 square feet and a city-determined market value of $44.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 148,258 square feet of built space are residential walkup properties, with hotel properties next occupying 34 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.

Surrounding

Within a 400-foot radius of 2651 Broadway, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on June 2, 2020 for the $1.2 million renovation of 10,270-square-foot M building with no residential units at 2626 Broadway.
Of those seven items, two were sales above $5 million totaling $51.5 million. The most recent of the two was Aulder Capital which bought the 32,900-square-foot, 26-unit rental (D7) on 2647 Broadway for $15.5 million from Stuart Eisenberger on March 15, 2022.
Of those seven items, four were loans above $5 million totaling $104.5 million. The most recent of the four was Aulder Capital which borrowed $11.5 million from Emerald Creek Capital secured by the 32,900-square-foot, 26-unit rental (D7) on 2647 Broadway on March 15, 2022.

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