Park-It Management’s Gary Spindler ups debt by $27.5M to $32.5M for industrial in Hell’s Kitchen

Park-It Management’s Gary Spindler through the entity Jafrog Realty, LLC as borrower signed a refi loan with lender First Republic Bank valued at $32.5 million for the industrial building (E7) at 622 West 51st Street in Hell’s Kitchen, Manhattan.
The deal closed on July 27, 2022 and was recorded on August 22, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $5 million. The property has 143,449 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $226 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 Park-It Management and Gary Spindler was Gary Spindler. The signatory for First Republic Bank was Irina Galleva. This loan is for the fee position in a property that is ground leased. The financing increased the debt through a $27.5 million gap loan from $5 million to $32.5 million.

The property

The 622 West 51st Street parcel has frontage of 125 feet and is 200 feet deep with a total lot size of 17,550 square feet. The lot is irregular. The zoning is M2-4 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $19 million.The most recent loan totaled $37.8 million and was provided by Ares Commercial Real Estate on November 23, 2021.

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

On these lots, there was one active new building construction project for a 123,181-square-foot storage (S-1) building. The project was developed by Christopher Barry with plans filed April 25, 2018 and permitted February 22, 2019.

The neighborhood

In Hell’s Kitchen, the bulk, or 39 percent of the 41.9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Hell’s Kitchen has 3.9 times the average sales volume among other neighborhoods with $1.3 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Hell’s Kitchen has 3.6 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Manhattan. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 265,654 square feet of the 421,604 square feet. The largest owner is Beacon Capital Partners, followed by LSC Development and then Park-It Management.

The majority, or 34 percent of the 421,604 square feet of built space are industrial buildings, with mixed-use buildings next occupying 32 percent of the space.

The borrower

The PincusCo database currently indicates that Park-It Management owned at least five commercial properties in New York City with 141,421 square feet and a city-determined market value of $30.6 million. (Market value is typically about 50% of actual value.) The portfolio has $58.3 million in debt, with top three lenders as JPMorgan Chase, Barclays, and Republic First Bank respectively. Within the portfolio, the bulk, or 63 percent of the 141,421 square feet of built space are specialty properties, with industrial properties next occupying 27 percent of the space. The bulk, or 90 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.
The PincusCo database currently indicates that Gary Spindler owned at least four commercial properties in New York City with 174,346 square feet and a city-determined market value of $32.6 million. (Market value is typically about 50% of actual value.) The portfolio has $57 million in debt, with top three lenders as Integrity Life Insurance Company, Capital One, and Signature Bank respectively. Within the portfolio, the bulk, or 74 percent of the 174,346 square feet of built space are elevator properties, with industrial properties next occupying 19 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

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