Pan Am Equities signs $8.8M refi loan with JPMorgan Chase for 56-unit rental in NoMad

Pan Am Equities through the entity 80 Madison Avenue, LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $8.8 million for the 56-unit residential rental building (D6) at 80 Madison Avenue in NoMad, Manhattan.
The deal closed on January 31, 2023 and was recorded on February 6, 2023. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $10 million.The property has 60,110 square feet of built space and 10,275 square feet of additional air rights for a total buildable of 70,380 square feet according to PincusCo analysis of city data. The loan price per built square foot is $146 and the price per buildable square foot is $125 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 Pan Am Equities was Scott E. Solomon. The signatory for JPMorgan Chase was Jennifer Smith.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Geoff Strauss, head officer and Sanjay Chauman, officer. The business entities are Pan Am Equities and 80 Madison Avenue, Llc. The 60,110-square-foot property generated revenue of $3.6 million or $61 per square foot, according to the most recent income and expense figures.

The property

The 80 Madison Avenue parcel has frontage of 74 feet and is 95 feet deep with a total lot size of 7,038 square feet. The zoning is C5-2 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 $16.6 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 $3,350 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 11, 2012. 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 this tax block, PincusCo has identified the owners of six of the 41 commercial properties representing 963,337 square feet of the 2,209,151 square feet. The largest owner is JTRE Holdings, followed by Phipps Houses and then Pan Am Equities.
On the tax block, there was one new building construction project filed totaling 169,210 square feet. It is a 123-unit, 169,210-square-foot R-2 building developed by John Pierce with plans filed January 30, 2018 and permitted June 6, 2018.

the majority, or 51 percent of the 2 million square feet of built space are office buildings, with elevator buildings next occupying 35 percent of the space.

The borrower

The PincusCo database currently indicates that Pan Am Equities owned at least 21 commercial properties in New York City with 2,304,042 square feet and a city-determined market value of $627 million. (Market value is typically about 50% of actual value.) The portfolio has $98.5 million in debt, borrowed from People’s United Bank and Bayerische Landesbank. Within the portfolio, the bulk, or 99 percent of the 2,304,042 square feet of built space are elevator properties, with walkup properties next occupying 1 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link