Rialto, Hines buy loans totaling $99.75M secured by three Hilson Management office buildings in Manhattan

Rialto Management Group in partnership with Hines bought three loans with original principals totaling $99.75 million and secured by three Hilson Management office buildings in Manhattan.

In the first, Rialto Management Group and Hines Rialto Credit Partners through the entity HRCP DLI Atls, LLC (Hines Rialto Credit Partners Direct Lending) bought a note with an original principal of $34.5 million from Flagstar Bank secured by Hilson Management’s office building (O6) at 185 Madison Avenue in Grand Central, Manhattan.
The deal closed on June 27, 2025 and was recorded on August 1, 2025. The property has 79,961 square feet of built space according to a PincusCo analysis of city data.

In the second, Rialto Management Group and Hines Rialto Credit Partners through the entity Hrcp Dli Atls, LLC bought a note with an original principal of $30.0 million from Flagstar Bank secured by Hilson Management’s office building (O6) at 5 West 37th Street in Grand Central, Manhattan.
The deal closed on June 27, 2025 and was recorded on August 1, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $30 million.The property has 82,878 square feet of built space according to a PincusCo analysis of city data.

In the third, Rialto Management Group and Hines Rialto Credit Partners through the entity Hrcp Dli Atls, LLC bought a note with an original principal of $35.2 million from Flagstar Bank secured by Hilson Management’s office building (O6) at 349 Lexington Avenue in Murray Hill, Manhattan.
The deal closed on June 27, 2025 and was recorded on August 1, 2025. The prior lender was Flagstar Bank which held debt that had an original loan amount of $35.2 million.The property has 70,828 square feet of built space according to a PincusCo analysis of city data.

(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 Hilson Management was Jeremy Schwalbe . The signatory for Rialto Management Group and Hines Rialto Credit Partners was Eric Green and Liat Heller .

Prior sales and revenue

The 79,961-square-foot property generated revenue of $4.5 million or $56 per square foot, according to the most recent income and expense figures.

The property

The office building in Grand Central has 79,961 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 100 feet deep with a total lot size of 4,941 square feet. The zoning is C5-2 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 $18.5 million. The most recent loan totaled $34.5 million and was provided by New York Community Bank on July 11, 2019.

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 two DOB violations, $1,250 in ECB penalties, and $2,610 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 Grand Central, The majority, or 83 percent of the 44.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has the 7th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Grand Central is the 7th most active neighborhood among other neighborhoods. It had 7.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space. There were five pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 10 commercial properties representing 212,579 square feet of the 278,829 square feet. The largest owner is Erica Lerner, followed by Hilson Management Corp. and then Community Church Of New York.
On the tax block, there was one new building construction project filed totaling 172,797 square feet. It is a 137-unit, 172,797 square-foot residential (R-2) building submitted by Continuum Company and filed by Jeff Loveland with plans filed June 13, 2024 and permitted May 9, 2025.

The majority, or 44 percent of the 278,829 square feet of built space are office buildings, with elevator buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Hilson Management owned at least two commercial properties with 37 residential units in New York City with 164,999 square feet and a city-determined market value of $47.8 million. (Market value is typically about 50% of actual value.) The portfolio has $83.4 million in debt, with top three lenders as Maverick Real Estate Partners, Citibank, and Signature Bank respectively. Within the portfolio, the bulk, or 81 percent of the 164,999 square feet of built space are office properties, with elevator properties next occupying 19 percent of the space. They are all located in Manhattan.

Direct link to Acris document. 185 Madison Avenue
Direct link to Acris document. 5 West 37th Street
Direct link to Acris document. 349 Lexington Avenue