Parkoff signs $12.8M refi with Esquire Bank for 24-unit elevator rental in Carnegie Hill

Parkoff Organization through the entity 133 East 87th Street LLC as borrower signed a refi loan with lender Esquire Bank valued at $12.8 million for the 24-unit corner residential elevator building at 133 East 84th Street in Carnegie Hill, Manhattan.
The deal closed on March 23, 2022 and was recorded on April 5, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $12.8 million.

The property has 18,460 square feet of built space and 19,468 square feet of additional air rights for a total buildable of 37,926 square feet according to PincusCo analysis of city data. The loan price per built square foot is $693 and the price per buildable square foot is $337 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 April 22, 2010, for $10 million. The signatory for Parkoff Organization was Adam L. Parkoff. The signatory for Esquire Bank was Steven Dorrite.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development include A Richard Parkoff, head officer and Allison Anderson, officer. The business entities are 133 East 84th St Llc/New Park Mngmt and 133 East 84th St Llc/New Park Mngmt. The 18,460-square-foot property generated revenue of $1.3 million or $72 per square foot, according to the most recent income and expense figures.

The property

The 133 East 84th Street parcel has frontage of 41 feet and is 102 feet deep with a total lot size of 4,214 square feet. The lot is irregular. The zoning is C1-8X which allows for up to 2 times floor area ratio (FAR) for commercial and up to 9 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.7 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $100 in OATH penalties 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 neighborhood

In Carnegie Hill, the majority, or 76 percent of the 38.3 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 9 percent of the space. In sales, Carnegie Hill has 3 times the average sales volume among other neighborhoods with $817.3 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Carnegie Hill has had very little major development activity relative to other neighborhoods.It had 709,333 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 28 commercial properties representing 82,345 square feet of the 405,553 square feet. The largest owner is HUBB NYC, followed by Dimitri N. Kessaris and then Parkoff Organization. There are no active new building construction projects on this tax block.

The majority, or 69 percent of the 805,274 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Parkoff Organization owned at least 69 commercial properties with 4,406,094 square feet and a city-determined market value of $441.8 million. (Market value is typically about 50% of actual value.) The portfolio has $355.6 million in debt, with top three lenders as New York Community Bank, Signature Bank, and Esquire Bank respectively. Within the portfolio, the bulk, or 91 percent of the 4,406,094 square feet of built space are residential elevator properties, with residential walkup properties next occupying 6 percent of the space. The bulk, or 31 percent of the built space, is in Bronx, with Manhattan next at 30 percent of the space.

Surrounding

Within a 400-foot radius of 133 East 84th Street, PincusCo identified 12 commercial real estate items of interests occurred over the past 24 months.
Of those 12 items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on February 12, 2021 for the $306,160 renovation of 92,680-square-foot R-2 building with 102 residential units at 1253 Lexington Avenue.
Of those 12 items, four were sales above $5 million totaling $60 million. The most recent of the four was Klosed Properties which bought the 11,925-square-foot, 14-unit rental (C7) on 128 East 86th Street for $8 million from Sanders Investments on June 14, 2021.
Of those 12 items, seven were loans above $5 million totaling $201.4 million. The most recent of the seven was Caiola Family which borrowed $5 million from JPMorgan Chase secured by the 20,736-square-foot, 35-unit rental (D1) on 128 East 85th Street on February 15, 2022.

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