Navigation Capital Group signs $185M refi loan with Kriss Capital for residential elevator in Midtown East
Navigation Capital Group through the entity Lex 47th Property Owner LLC as borrower signed a refi loan with lender Kriss Capital through the entity Km 47th Street Us Financing Us Lp valued at $185 million for the 191-unit residential elevator building at 135 East 47th Street in Midtown East, Manhattan.
The deal closed on March 27, 2024 and was recorded on April 8, 2024. The prior lender was Fortress Investment Group which held debt that had an original loan amount of $156.5 million. The property has 166,036 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,114 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 12, 2019, for $115 million. The signatory for Navigation Capital Group was Patrick Chaolun Zhu. The signatory for Kriss Capital was Michael Friedman. Navigation Capital is a division of the Hong Kong-listed development firm, Hopson Development Holdings. Traded reported on the loan, identifying the broker as JLL’s Scott Aiese.
The property
The residential elevator building with 191 residential units in Midtown East has 166,036 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 100 feet deep with a total lot size of 10,545 square feet. The zoning is C5-2.5 which allows for up to 12 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $14.2 million. The most recent loan totaled $156.2 million and was provided by Fortress Investment Group on May 16, 2022.
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 and $2,200 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a residential building. The project was submitted by New Empire Corp. and filed by Bentley Zhao with plans filed March 28, 2016 and permitted August 12, 2021. On the tax lot, the most recent condominium plan was filed by LEX 47TH PROPERTY OWNER LLC to create 191 residential units and 1 commercial units in a building at 131-141 East 47th Street in Midtown East, Manhattan, called 135 East 47th Street Condominium A/K/A Monogram Et Al.that has a $318.8 million sellout, according to an September 23, 2021 submission to the New York State Attorney General. The principals of the sponsor, LEX 47TH PROPERTY OWNER LLC, were F. Scott Shea and Chaolun Zhu.
The block
On this tax block, PincusCo has identified the owners of seven of the 12 commercial properties representing 992,985 square feet of the 1,053,867 square feet. The largest owner is New Empire Corp., followed by Madison Realty Capital and then Holiday Inn Club Vacations.
On the tax block, there was one new building construction project filed totaling 151,836 square feet. It is a 137-unit, 151,836 square-foot residential (R-2) building submitted by New Empire Corp. and filed by Bentley Zhao with plans filed March 28, 2016 and permitted August 12, 2021.
The majority, or 54 percent of the 1.1 million square feet of built space are hotel buildings, with elevator buildings next occupying 44 percent of the space.
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