Related amends $450M loan with MetLife, PacLife for Columbus Circle retail, parking

Related Companies through the entities A/R Retail LLC and A/R Garage LLC as borrowers signed a refi loan with lender MetLife and Pacific Life Insurance Company valued at $450 million for the retail condominium unit at 10 Columbus Circle and the garage property with an address of 35 Columbus Circle, both in Lincoln Square, Manhattan. The property is known as the Shops at Columbus Circle.
The deal closed on March 29, 2024 and was recorded on May 7, 2024. The two properties have 532,636 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $844 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 retail is 418,593 square feet and the garage is 114,043 square feet, according to figures on page 37 of the amended condo declaration.

The signatory for Related Companies was Andrew Rosen. The signatory for MetLife and Pacific Life Insurance Company was Brett Ulrich and John Waldeck. This is an amendment of a 2013, $450 million loan.

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 10 Columbus Circle.

The property

The two condos in Lincoln Square has 532,636 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 418,593 square feet. The city-designated market value for the property in 2022 is $404.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Lincoln Square, The majority, or 61 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Lincoln Square has 2.3 times the average sales volume among other neighborhoods with $627.9 million in sales volume in the last two years and is the 14th highest in Manhattan. For development, Lincoln Square has 1.6 times the average amount of major developments relative to other neighborhoods and is the 19th highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The borrower

The PincusCo database currently indicates that Related Companies owned at least 177 commercial properties with 9,309 residential units in New York City with 21,261,616 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.1 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and Deutsche Bank respectively. Within the portfolio, the bulk, or 44 percent of the 21,261,616 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

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