Princeton International Properties signs $128M refi for office building in Midtown East

Princeton International Properties through the entity Plaza 52, LLC as borrower signed a refi loan with lender Signature Bank valued at $128 million for the office building (O4) at 150 East 52nd Street in Midtown East, Manhattan.
The deal closed on August 29, 2022 and was recorded on September 15, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $128.5 million. The property has 304,640 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $420 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 Princeton International Properties was David A. Tawfik. The signatory for Signature Bank was Kenneth A. Stagnari.

Prior sales and revenue

The 304,640-square-foot property generated revenue of $18.8 million or $62 per square foot, according to the most recent income and expense figures.

The property

The 150 East 52nd Street parcel has frontage of 150 feet and is 100 feet deep with a total lot size of 15,062 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 $100.2 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 one DOB violation and $935 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 4.2 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 15.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 2,911,776 square feet of the 3,243,029 square feet. The largest owner is Rudin Management, followed by Angelo Gordon and then Chetrit Organization.
There are no active new building construction projects on this tax block.

The majority, or 99 percent of the 3.2 million square feet of built space are office buildings, with elevator buildings next occupying 1 percent of the space.

The borrower

The PincusCo database currently indicates that Princeton International Properties owned at least three commercial properties in New York City with 493,734 square feet and a city-determined market value of $149 million. (Market value is typically about 50% of actual value.) The portfolio has $84.5 million in debt, borrowed from Wells Fargo and Signature Bank. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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