RFR Holding signs $22M acquisition loan with Valley National Bank for mixed-use in SoHo

RFR Holding through the entity 102 Greene LLC as borrower signed a acquisition loan with lender Valley National Bank through the entity Valley National Bank valued at $22 million for the mixed-use building (K4) at 102 Greene Street in SoHo, Manhattan.
The deal closed on November 2, 2022 and was recorded on November 3, 2022. The property has 9,339 square feet of built space and 3,150 square feet of additional air rights for a total buildable of 12,500 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,355 and the price per buildable square foot is $1,760 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 owner bought the property on October 20, 2022, for $31.5 million. The signatory for RFR Holding was Richard Froom. TA Realty sold for $31.5M to RFR Holding on October 20, 2022.

Prior sales and revenue

The 9,339-square-foot property generated revenue of $1.4 million or $148 per square foot, according to the most recent income and expense figures.

The property

The 102 Greene Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-5A which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $7.5 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 $2,250 in ECB penalties and $2,950 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 SoHo, the bulk, or 46 percent of the 9.4 million square feet of commercial built space are office buildings, with mixed-use buildings next occupying 15 percent of the space. In sales, SoHo has 1.6 times the average sales volume among other neighborhoods with $567.1 million in sales volume in the last two years and is the 25th highest in Manhattan. For development, SoHo has had very little major development activity relative to other neighborhoods.It had 255,824 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. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 13 of the 28 commercial properties representing 233,375 square feet of the 354,578 square feet. The largest owner is SL Green Realty, followed by Carl Stefan Erling Persson and then Thor Equities.
There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 305,891 square feet of built space are office buildings, with mixed-use buildings next occupying 20 percent of the space.

The borrower

The PincusCo database currently indicates that RFR Holding owned at least 25 commercial properties in New York City with 3,211,968 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 92 percent of the 3,211,968 square feet of built space are office properties, with hotel properties next occupying 6 percent of the space. They are all located in Manhattan.

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