Olnick Organization signs $77M refi for office building in Flatiron District

Olnick Organization through the entity Roc-Fifth Avenue Associates, LLC as borrower signed a refi loan with lender New York Community Bank valued at $77 million for the office building (O6) at 130 Fifth Avenue in Flatiron District, Manhattan.
The deal closed on July 27, 2022 and was recorded on August 1, 2022. The prior lender was M&T Bank which held debt that had an original loan amount of $52 million. The property has 120,000 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $641 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 Olnick Organization was Seth Schochet. The signatory for New York Community Bank was James C. Ricca.

Prior sales and revenue

The 120,000-square-foot property generated revenue of $8.9 million or $74 per square foot, according to the most recent income and expense figures.

The property

The 130 Fifth Avenue parcel has frontage of 78 feet and is 135 feet deep with a total lot size of 10,975 square feet. The lot is irregular. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $37.7 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 one DOB violation 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 Flatiron District, the majority, or 72 percent of the 23.8 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 4.4 times the average sales volume among other neighborhoods with $1.5 billion in sales volume in the last two years and is the 8th highest in Manhattan. For development, Flatiron District has 1.2 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 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 this tax block, PincusCo has identified the owners of two of the 29 commercial properties representing 612,091 square feet of the 1,194,199 square feet. The two identified owners are RXR Realty and Gould Investors. There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 476,510 square feet of built space are office buildings, with mixed-use buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Olnick Organization owned at least nine commercial properties in New York City with 2,663,639 square feet and a city-determined market value of $290.7 million. (Market value is typically about 50% of actual value.) The portfolio has $115 million in debt, borrowed from First Republic Bank and Capital One. Within the portfolio, the bulk, or 94 percent of the 2,663,639 square feet of built space are elevator properties, with office properties next occupying 6 percent of the space. The bulk, or 68 percent of the built space, is in Manhattan, with Bronx next at 32 percent of the space.

Direct link to Acris document. link