New York Proton Center signs $150M refi for medical in East Harlem

New York Proton Center through the entity Mm Proton I, LLC as borrower signed a refi loan with lender Nomura Holdings through the entity Nomura Securities International, Inc. valued at $150 million for the specialty medical building (I9) at 225 East 126th Street in East Harlem, Manhattan.
The deal closed on May 29, 2024 and was recorded on June 7, 2024. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $239.7 million.
The property has 139,333 square feet of built space and 244,084 square feet of additional air rights for a total buildable of 383,196 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,076 and the price per buildable square foot is $391 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 July 15, 2015, for $14 million. The signatory for New York Proton Center was Robert F. Murphy Jr. The signatory for Nomura Holdings was Nilesh Parikh.

The property

The specialty building in East Harlem has 139,333 square feet of built space and 244,084 square feet of additional air rights for a total buildable of 383,196 square feet according to a PincusCo analysis of city data. The parcel has frontage of 255 feet and is 199 feet deep with a total lot size of 50,957 square feet. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $115.6 million. The most recent loan totaled $143.7 million and was provided by JPMorgan Chase on April 1, 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 29 DOB violations and $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 20, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In East Harlem, The majority, or 51 percent of the 52.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, East Harlem has 1.5 times the average sales volume among other neighborhoods with $415.3 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, East Harlem has 1.4 times the average amount of major developments relative to other neighborhoods and is the 21st highest in Manhattan. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 139,333 square feet of the 153,583 square feet. The two identified owners are Nyc Department Of Housing Preservation And Development and New York Proton Center.
There are no active new building construction projects on this tax block.

The majority, or 91 percent of the 153,583 square feet of built space are specialty buildings, with industrial buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that New York Proton Center owned at least one commercial property in New York City with 139,333 square feet and a city-determined market value of $115.6 million. (Market value is typically about 50% of actual value.) The portfolio has $386.4 million in debt, borrowed from JPMorgan Chase. The portfolio consists of at least a single specialty property. It is located in Manhattan.

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