RAL signs $148.1M loan with Deutsche Bank for office in East Village

RAL Development Services entity 14th At Irving Fee LLC as borrower signed a loan with lender Deutsche Bank valued at $148.1 million for the corner office building at 124 East 14th Street in East Village, Manhattan.
The deal closed on May 31, 2022 and was recorded on June 27, 2022. The property has 251,288 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $589 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 property

The 124 East 14th Street parcel has frontage of 150 feet and is 103 feet deep with a total lot size of 15,450 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 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 $35.8 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 $14,460 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 207,785-square-foot B building. The project was developed by Rory Melvin with plans filed November 15, 2018 and permitted August 14, 2019.

The neighborhood

In East Village, the bulk, or 35 percent of the 19.3 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space. In sales, East Village has 2.1 times the average sales volume among other neighborhoods with $593.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 152,634 square feet of commercial and multi-family construction under development in the last two years, which represents 0.79 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 15 commercial properties representing 1,218,812 square feet of the 1,247,388 square feet. The largest owner is New York University, followed by BLDG Management and then City of New York. There is one active new building construction project totaling 207,785 square feet. It is a N/A-unit, 207,785-square-foot B building developed by Rory Melvin with plans filed November 15, 2018 and permitted August 14, 2019.

the majority, or 53 percent of the 1.2 million square feet of built space are hotel buildings, with residential elevator buildings next occupying 24 percent of the space.

Surrounding

Within a 400-foot radius of 124 East 14th Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, two were for major renovation including a certificate of occupancy change. They were two permit applications with a total initial cost of $1.8 million. The most recent of these two items was the filing on February 4, 2022 for a 57,287-square-foot R-2 building with 37 residential units at 114 East 13th Street.
Of those five items, three were loans above $5 million totaling $31.9 million. The most recent of the three was Slavko Bernic which borrowed $14.4 million from JPMorgan Chase secured by the 41,750-square-foot, 69-unit rental (D5) on 115 East 12th Street on February 28, 2022.

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