Namdar Realty Group, Klosed Properties sign $49M acquisition loan with Truist Bank for residential elevator in Upper West Side

Namdar Realty Group and Klosed Properties through the entity 95 W95 Bh LLC as borrower signed an acquisition loan with lender Truist Bank valued at $49 million for the 246-unit residential elevator building (D1) at 721 Columbus Avenue in Upper West Side, Manhattan. The prior owner was Steven Witkoff’s real estate investment company, Witkoff.
The deal closed on December 9, 2022 and was recorded on January 6, 2023. The property has 308,302 square feet of built space and 11,849 square feet of additional air rights for a total buildable of 320,260 square feet according to PincusCo analysis of city data. The loan price per built square foot is $158 and the price per buildable square foot is $153 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 March 3, 2006, for $68 million. The signatory for Namdar Realty Group and Klosed Properties was Steven Kashanian and Matthew K. Sheriff.

Prior sales and revenue

The 308,302-square-foot property generated revenue of $4.9 million or $16 per square foot, according to the most recent income and expense figures.

The property

The 721 Columbus Avenue parcel has frontage of 201 feet and is 200 feet deep with a total lot size of 32,026 square feet. The lot is irregular. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. 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 three DOB violations, $5,625 in ECB penalties, 23 housing violations, and $8,875 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 seven of the 20 commercial properties representing 40,497 square feet of the 423,297 square feet. The largest owner is Robert & Anne Rabbino, followed by Richard Clarke and then James Gerson.
There are no active new building construction projects on this tax block.

The majority, or 78 percent of the 393,836 square feet of built space are elevator buildings, with walkup buildings next occupying 20 percent of the space.

The borrower

The PincusCo database currently indicates that Namdar Realty Group owned at least 60 commercial properties in New York City with 1,109,529 square feet and a city-determined market value of $211.4 million. (Market value is typically about 50% of actual value.) The portfolio has $150.6 million in debt, with top three lenders as Benefit Street Partners, Signature Bank, and Ladder Capital respectively. Within the portfolio, the bulk, or 31 percent of the 1,109,529 square feet of built space are office properties, with walkup properties next occupying 30 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Bronx next at 20 percent of the space.
The PincusCo database currently indicates that Klosed Properties owned at least 50 commercial properties in New York City with 581,264 square feet and a city-determined market value of $86.5 million. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 48 percent of the 581,264 square feet of built space are walkup properties, with industrial properties next occupying 19 percent of the space. The bulk, or 39 percent of the built space, is in Bronx, with Manhattan next at 30 percent of the space.

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