Paramdeep Singh gets $44.5M refi from Yellowstone for hotel in Midtown West, was threatened with foreclosure

Paramdeep Singh through the entity Premier Hotels LLC as borrower signed a refi loan with lender Yellowstone Real Estate Investments through the entity YS West 47 Lender LLC valued at $44.5 million for the hotel building (H3) at 59 West 46th Street in Midtown West, Manhattan.
The deal closed on February 28, 2023 and was recorded on March 3, 2023. The prior lender was Benefit Street Partners which held debt that had an original loan amount of $37 million.

The property has 100,678 square feet of built space and 17,775 square feet of additional air rights for a total buildable of 118,500 square feet according to PincusCo analysis of city data. The loan price per built square foot is $442 and the price per buildable square foot is $375 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 February 11, 2022, for $59.5 million. The signatory for Paramdeep Singh was Paramdeep Singh. The signatory for Yellowstone Real Estate Investments was Tsach I. Hera. Paramdeep Singh refinanced the loan, after Crain’s reported a March 2023 auction date for the hotel.

Yellowstone has been an active note buyer in Manhattan.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Nicole Mclean, head officer. The business entity is Premier Hotels Llc.

The property

The 59 West 46th Street parcel has frontage of 55 feet and is 200 feet deep with a total lot size of 11,850 square feet. The lot is irregular. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $29.1 million.

Development

For the tax lot building, it received its initial certificate of occupancy on July 20, 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 neighborhood

In Midtown West, the majority, or 75 percent of the 76 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 15.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 47 of the 208 commercial properties representing 1,173,072 square feet of the 1,710,800 square feet. The largest owner is PGIM Real Estate, followed by Touro College and then SL Green Realty.
On the tax block, there were two new building construction projects totaling 8,632 square feet. The largest is a N/A-unit, 4,790-square-foot M building developed by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.The second largest is a N/A-unit, 3,842-square-foot M building developed by Roger Merriman with plans filed June 15, 2015 and it has not been permitted yet.

The majority, or 78 percent of the 1.2 million square feet of built space are office buildings, with hotel buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Paramdeep Singh owned at least two commercial properties in New York City with 127,928 square feet and a city-determined market value of $39.7 million. (Market value is typically about 50% of actual value.) The portfolio has $53.8 million in debt, borrowed from Benefit Street Partners and W Financial. Within the portfolio, all identified are hotel properties. They are all located in Manhattan.

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