Prime Group Holdings signs $29.9M loan for three properties in Harlem

Prime Group Holdings through the entity Prime Storage Fifth Avenue Harlem, LLC as borrower signed a refi loan with lender Citibank valued at $29.9 million for three industrial properties including the industrial building (E7) at 12 West 142nd Street, an industrial building (E7) at 2350 5th Avenue and a vacant lot (G7) at West 142nd Street, all one one tax block in Harlem, Manhattan. This loan is related to a larger $750 million loan covering additional properties.
The deal closed on December 12, 2023 and was recorded on December 18, 2023. The three properties have 141,962 square feet of built space and 17,182 square feet of additional air rights according to a PincusCo analysis of city data.
The signatory for Prime Group Holdings was Robert Moser. The parcel has frontage of 245 feet and is 199 feet deep with a total lot size of 53,953 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $12 million. The parcel has frontage of 199 feet and is 100 feet deep with a total lot size of 19,983 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $7.8 million. The parcel has frontage of 50 feet and is 99 feet deep with a total lot size of 4,995 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $969,000.

Prime Group Holdings controls the entire block, which is smaller than a standard city block.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 12 West 142nd Street.

The property

The industrial building in Harlem has 141,962 square feet of built space and 17,182 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 245 feet and is 199 feet deep with a total lot size of 53,953 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $12 million.

Violations and lawsuits

The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1.4 million money judgment concerning a commission filed on May 17, 2023, by Invictus Property Advisors against Gary Katz. In addition, according to city public data, the properties have received $5,050 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 $1 million on this tax lot.

The neighborhood

In Harlem, The bulk, or 43 percent of the 81 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.7 times the average sales volume among other neighborhoods with $935.8 million in sales volume in the last two years and is the 13th highest in Manhattan. For development, Harlem has 3.2 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Manhattan. It had 3.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 12 West 142nd Street, PincusCo has identified the owners of three of the three commercial properties representing 141,962 square feet of the 141,962 square feet. The identified owner is Prime Group Holdings.
There are no active new building construction projects on this tax block.

All properties are industrial.

The borrower

The PincusCo database currently indicates that Prime Group Holdings owned at least 11 commercial properties in New York City with 601,613 square feet and a city-determined market value of $84.5 million. (Market value is typically about 50% of actual value.) The portfolio has $168.6 million in debt, borrowed from Slate Asset Management and Citibank. Within the portfolio, all identified are industrial properties. The bulk, or 47 percent of the built space, is in Queens, with Manhattan next at 24 percent of the space.

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