Olshan Properties signs $23.5M refi loan with Signature Bank for two rentals in Washington Heights

Olshan Properties through the entity 177 Fort Washington Property Owner LLC as borrower signed a refi loan with lender Signature Bank valued at $23.5 million for two residential elevator properties including the 61-unit residential elevator building (D7) at 385 Ft Washington Avenue in Washington Heights, Manhattan and 55-unit residential elevator building (D7) at 395 Ft Washington Avenue in Washington Heights, Manhattan.
The deal closed on February 10, 2023 and was recorded on February 15, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $24 million.The two properties have 113,742 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $206 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 Olshan Properties was Zachary Bornstein. The signatory for Signature Bank was Mark Kraehling.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 385 Ft Washington Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Zachary Bornstein, head officer and Steven Colon, site manager. The business entity is 177 Fort Washington Property Owner Llc. The two properties with a total of 113,742 square feet of built space generated revenue of $2.2 million per year or $19 per square foot.

The property

The 385 Ft Washington Avenue parcel has frontage of 127 feet and is 100 feet deep with a total lot size of 12,750 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5 million.

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 received 43 housing violations, $3,175 in OATH penalties, and one housing litigation 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 the tax block of 385 Ft Washington Avenue, PincusCo has identified the owners of 15 of the 38 commercial properties representing 585,764 square feet of the 1,191,207 square feet. The largest owner is Prana Investments, followed by Moses Mizrahi and then Michael Aryeh.
there are no active new building construction projects on this tax block.

the majority, or 61 percent of the 1.2 million square feet of built space are elevator buildings, with walkup buildings next occupying 39 percent of the space.

The borrower

The PincusCo database currently indicates that Olshan Properties owned at least 13 commercial properties in New York City with 661,884 square feet and a city-determined market value of $112.4 million. (Market value is typically about 50% of actual value.) The portfolio has $342.6 million in debt, with top three lenders as Wells Fargo, NYC Housing Development Corporation, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 97 percent of the 661,884 square feet of built space are elevator properties, with walkup properties next occupying 2 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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