OKO Group signs $508.5M condo inventory loan at 730 Fifth Avenue, part of $754M deal

OKO Group through the entity 730 Fifth Upper, LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $508.5 million for 19 condominium units at 730 Fifth Avenue in Midtown West, Manhattan.
The deal closed on June 10, 2022 and was recorded on June 23, 2022. The prior lender was Bank OZK which held debt that had an original loan amount of $300 million. The 19 properties have 257,501 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $1,974 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 signatory for OKO Group was Davie Lurie. The signatory for JPMorgan Chase was Simon B. Burce. The Commercial Observer reported the full deal total was $754 million, and it was brokered by Keith Kurland, Aaron Appel, Jonathan Schwartz and Adam Schwartz of Walker & Dunlop.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There was a condominium project filed with the address 730 Fifth Avenue and the name Aman New York Residences on November 16, 2016. The principals of the sponsor, 730 FIFTH UPPER, LLC, was Ahmet Oktay Cini.

The neighborhood

In Midtown West, the majority, or 69 percent of the 82.2 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Midtown West is the 3rd most active neighborhood among other neighborhoods. It had 8.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 730 Fifth Avenue, PincusCo has identified the owners of 11 of the 31 commercial properties representing 1,416,135 square feet of the 1,997,852 square feet. The largest owner is LeFrak, followed by Brookfield Properties and then Wharton Properties. There is one active new building construction project totaling 383,134 square feet. It is a 80-unit, 383,134-square-foot R-2 building developed by Anthony Calicchio with plans filed April 17, 2018 and it has not been permitted yet.

The majority, or 70 percent of the 1.6 million square feet of built space are office buildings, with residential elevator buildings next occupying 19 percent of the space.

Surrounding

Within a 400-foot radius of 730 Fifth Avenue, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $636,000. The most recent of these two items was the filing on February 3, 2022 for a 262,870-square-foot B building with 11 residential units at 711 5th Avenue.
Of those six items, four were loans above $5 million totaling $810 million. The most recent of the four was Trump Organization which borrowed $100 million from Axos Bank secured by one commercial condo unit in the 232-unit mixed-use building (RM) on 721 5th Avenue on March 8, 2022.

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