Pokoik, Steinberg sign $25M rehab loan for office building in Midtown East
575 Madison Avenue (Credit - Google)
Jonathan Pokoik and Michael L. Steinberg through the entity 575 Associates L.L.C. as borrowers signed a rehab construction loan with lender Apple Bank for Savings valued at $25 million for the office building (O4) at 575 Madison Avenue in Midtown East, Manhattan.
The deal closed on August 4, 2022 and was recorded on August 22, 2022. The property has 399,613 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $62 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 Jonathan Pokoik and Michael L. Steinberg was Jonathan Pokoik and Michael L. Steinberg. The signatory for Apple Bank for Savings was Cynthia Wang. This is an initial loan for the property, and the entire loan is a building loan for the rehab. The borrower entities are both the fee and the ground lessor.
Prior sales and revenue
The 399,613-square-foot property generated revenue of $37.7 million or $94 per square foot, according to the most recent income and expense figures.
The property
The 575 Madison Avenue parcel has frontage of 200 feet and is 125 feet deep with a total lot size of 20,075 square feet. The lot is irregular. The zoning is C5-3 which allows for up to 15 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 $203.2 million.
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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 six DOB violations, $6,250 in ECB penalties, and $7,175 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 East, the majority, or 82 percent of the 61.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has 4.1 times the average sales volume among other neighborhoods with $1.4 billion in sales volume in the last two years and is the 9th highest in Manhattan. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 15.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the 26 commercial properties representing 366,650 square feet of the 2,418,741 square feet. The two identified owners are Trump Organization and Sheikh Hamad Bin Jassim bin Jaber Al-Thani.
The majority, or 89 percent of the 2 million square feet of built space are office buildings, with mixed-use buildings next occupying 7 percent of the space.
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