Rettner Realty signs $5M refi with Webster Bank for office in Chelsea
Rettner Realty through the entity 118 West 27 LLC as borrower signed a refi loan with lender Webster Bank valued at $5 million for the six-unit office building (O6) at 118 West 27th Street in Chelsea, Manhattan.
The deal closed on May 1, 2023 and was recorded on May 25, 2023. The prior lender was Webster Bank which held debt that had an original loan amount of $5 million. The property has 43,393 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $115 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 Rettner Realty was Ronald Rettner. The signatory for Webster Bank was Michael Vitale. The loan was converted to a 7-year permanent loan maturing in 2030 with a 5.5% interest rate.
Prior sales and revenue
The 43,393-square-foot property generated revenue of $2 million or $46 per square foot, according to the most recent income and expense figures.
The property
The office building with 6 residential units in Chelsea has 43,393 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 37 feet and is 98 feet deep with a total lot size of 3,702 square feet. The zoning is M1-6 which allows for up to 10 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $9.2 million. The most recent loan totaled $5 million and was provided by Sterling National Bank on June 4, 2021.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $10,000 in ECB penalties and $12,450 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 Chelsea, The bulk, or 36 percent of the 52.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 28 percent of the space. In sales, Chelsea has the 4th highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, Chelsea has 1.7 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Manhattan. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 13 of the 23 commercial properties representing 714,606 square feet of the 1,325,984 square feet. The largest owner is Yitzchak Schwartz, followed by Two Kings Real Estate and then So Young Shin.
There are no active new building construction projects on this tax block.
The majority, or 55 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 26 percent of the space.
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