Payman Yadidi, Chetrits, sign $62M refi with Signature Bank for office in Midtown West

Payman Yadidi, Isaac Chetrit, Eli Chetrit, David Chetrit, Chim Tob Chetrit, and Zuda Chetrit through the entity CTC 22 W 48 St LLC as borrower signed a refi loan with lender Signature Bank through the entity Signature Bank valued at $62 million for the office building (O6) at 22 West 48th Street in Midtown West, Manhattan.
The deal closed on June 23, 2022 and was recorded on July 1, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $55 million. The property has 80,604 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $769 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 August 30, 2012, for $53.8 million. The signatory for Payman Yadidi, Isaac Chetrit, Eli Chetrit, David Chetrit, Chim Tob Chetrit, and Zuda Chetrit was Payman Yadidi, Isaac Chetrit, Eli Chetrit, David Chetrit, Chim Tob Chetrit, and Zuda Chetrit. The signatory for Signature Bank was Elizabeth Arato.

Prior sales and revenue

The 80,604-square-foot property generated revenue of $6.9 million or $86 per square foot, according to the most recent income and expense figures.

The property

The 22 West 48th Street parcel has frontage of 67 feet and is 100 feet deep with a total lot size of 6,727 square feet. 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 $36.6 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 three DOB violations and $250 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 Midtown West, the majority, or 69 percent of the 81.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 11.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 15 of the 36 commercial properties representing 879,471 square feet of the 1,879,636 square feet. The largest owner is Stawski Partners, followed by Jack Elo and then SL Green Realty. There are two active new building construction projects totaling 227,777 square feet. The largest is a 534-unit, 168,897-square-foot R-1 building developed by Extell Development with plans filed November 20, 2020 and it has not been permitted yet. The second largest is a 58,880-square-foot M building developed by Michael Mcmenamin with plans filed June 1, 2016 and it has not been permitted yet.

The majority, or 91 percent of the 1.9 million square feet of built space are office buildings, with mixed-use buildings next occupying 5 percent of the space.

The borrower

The PincusCo database currently indicates that Isaac Chetrit owned at least four commercial properties with 455,413 square feet and a city-determined market value of $137.3 million. (Market value is typically about 50% of actual value.) The portfolio has $9.8 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 93 percent of the 455,413 square feet of built space are office properties, with retail properties next occupying 5 percent of the space. The bulk, or 95 percent of the built space, is in Manhattan, with Brooklyn next at 5 percent of the space.

The PincusCo database currently indicates that David Chetrit owned at least one commercial property with 31,740 square feet and a city-determined market value of $7.2 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from JPMorgan Chase. The portfolio consists of at least a single retail property. It is located in Brooklyn.
The PincusCo database currently indicates that Eli Chetrit owned at least one commercial property with 62,632 square feet and a city-determined market value of $14.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 22 West 48th Street, PincusCo identified 19 commercial real estate items of interests occurred over the past 24 months.
Of those 19 items, one was in new building development. It was a new building permit application filed on November 20, 2020 for a 168,897-square-foot R-1 building with 534 residential units at 32 West 48th Street.
Of those 19 items, seven were sales above $5 million totaling $405.5 million. The most recent of the seven was Sunkar Satvaldiyev which bought the 30,845-square-foot, four-unit mixed-use building (K2) on 10 West 48th Street for $49.5 million from DNA Development on April 21, 2022.
Of those 19 items, 11 were loans above $5 million totaling $608.8 million. The most recent of the 11 was Elo Organization which borrowed $19.5 million from JPMorgan Chase secured by the 58,201-square-foot, 42-unit office building (O6) on 42 West 48th Street on April 25, 2022.

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