Pacific Oak Capital Advisors through the entity 110 William Property Investors III, LLC as borrower signed a rehab construction loan with lender Deutsche Pfandbriefbank valued at $54.1 million for the office building (O4) at 110 William Street in Financial District, Manhattan. This is additional debt and there remains loans with original principals totaling $269 million.
The deal closed on July 5, 2023 and was recorded on July 26, 2023. The property has 788,241 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $68 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 May 2, 2014, for $261.1 million. The signatory for Pacific Oak Capital Advisors was Michael A. Bender. Pacific Oak Capital Advisors took control of the building as Savanna exited, The Real Deal reported last month.
Prior sales and revenue
The 788,241-square-foot property generated revenue of $34.9 million or $44 per square foot, according to the most recent income and expense figures.
The office building in Financial District has 788,241 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 188 feet and is 173 feet deep with a total lot size of 32,511 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $145.2 million.
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 $2,050 in OATH penalties in the last year.
For the tax lot building, it received its initial certificate of occupancy on July 3, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.
On this tax block, PincusCo has identified the owners of two of the five commercial properties representing 172,500 square feet of the 1,164,247 square feet. The two identified owners are Maverick Management and Kibel Company.
On the tax block, there were two new building construction projects totaling 355,831 square feet. The largest is a 242-unit, 337,311 square-foot residential (R-2) building submitted by Lightstone Group and filed by Joseph Teichman with plans filed March 18, 2015 and permitted January 11, 2018. The second largest is a 10-unit, 18,520 square-foot residential (R-2) building submitted by Brian Collins with plans filed June 9, 2014 and it has not been permitted yet.
The majority, or 68 percent of the 1.2 million square feet of built space are office buildings, with elevator buildings next occupying 28 percent of the space.
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