Revere Capital refinances $10M loan with affiliate at 8-unit rental in Flatiron District

Revere Capital through the entity NYC 18th Street LLC as borrower signed a refi loan with an affiliate of Revere Capital through the entity Union Square 18th Street LLC valued at $10 million for the eight-unit residential elevator building (D7) at 16 East 18th Street in Flatiron District, Manhattan.
The deal closed on May 30, 2024 and was recorded on June 10, 2024. The prior lender was Northeast Bank which held debt that had an original loan amount of $10 million. The property has 20,258 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $493 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 the owner Revere Capital was Clark Brooks Briner. The signatory for the lender affiliated with Revere Capital was Lindsay Haynes.

Stone Street Properties bought this building in 2015 for $21.2 million, then lost it to Revere Capital through a foreclosure deed transfer on July 1, 2022.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Thomas Gagliano, head officer and Alex Abreu, officer. The business entity is 16e18 Stone Llc.

The property

The residential elevator building with 8 residential units in Flatiron District has 20,258 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 23 feet and is 94 feet deep with a total lot size of 2,569 square feet. The zoning is M1-5M which allows for up to 5 times floor area ratio (FAR) for manufacturing. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $4.9 million. The most recent loan totaled $10 million and was provided by Northeast Bank on May 31, 2023.

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 four DOB violations, four housing violations, and $600 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 block

On this tax block, PincusCo has identified the owners of 11 of the 31 commercial properties representing 348,251 square feet of the 871,545 square feet. The largest owner is Transworld Equities, followed by Trans World Equities and then Shel Capital.
On the tax block, there was one new building construction project filed totaling 38,263 square feet. It is a 38,263 square-foot business (B) building submitted by Ken Rosenblum with plans filed April 27, 2020 and it has not been permitted yet.

The majority, or 47 percent of the 871,545 square feet of built space are office buildings, with mixed-use buildings next occupying 34 percent of the space.

The borrower

The PincusCo database currently indicates that Revere Capital owned at least one commercial property with eight residential units in New York City with 20,258 square feet and a city-determined market value of $4.9 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from Northeast Bank. The portfolio consists of at least a single elevator property. It is located in Manhattan.

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