Robert Gilardian signs $39.8M loan for three rental properties in Manhattan

Robert Gilardian through the entity 107 West 68th Street Delaware, LLC as borrower signed a loan with lender Ladder Capital Finance valued at $39.8 million for three properties including the 80-unit residential elevator building (D7) at 245 West 51st Street in Midtown West, Manhattan, 30-unit residential elevator building (D1) at 107 West 68th Street in Lincoln Square, Manhattan, and 12-unit residential walkup building (C7) at 1443 York Avenue in Lenox Hill, Manhattan.
The deal closed on June 3, 2022 and was recorded on July 5, 2022. The three properties have 80,248 square feet of built space and 47,651 square feet of additional air rights for a total buildable of 127,890 square feet according to PincusCo analysis of city data. The loan price per built square foot is $495 and the price per buildable square foot is $310 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.)

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 245 West 51st Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Robert Gilardian C/O Aj Clarke, head officer and Robert Gordon, agent. The business entities are C/O Aj Clarke Re Corp and 245 W 51st Realty Llc C/O Aj Clarke. The three properties with a total of 80,248 square feet of built space generated revenue of $5 million per year or $63 per square foot.

The property

The 245 West 51st Street parcel has frontage of 82 feet and is 100 feet deep with a total lot size of 8,284 square feet. The zoning is C6-5 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 $15.6 million.
The 1443 York Avenue parcel has frontage of 25 feet and is 82 feet deep with a total lot size of 2,075 square feet. The zoning is R10 which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.6 million.
The 107 West 68th Street parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,075 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, six housing violations, and $1,350 in OATH penalties in the last year.

The neighborhood

In Midtown West, the majority, or 69 percent of the 81.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 11.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On the tax block of 245 West 51st Street, PincusCo has identified the owners of one of the 14 commercial properties representing 48,368 square feet of the 1,137,829 square feet. The identified owner is Robert Gilardian. There are no active new building construction projects on this tax block.

The majority, or 68 percent of the 1.2 million square feet of built space are hotel buildings, with residential elevator buildings next occupying 21 percent of the space.

Surrounding

Within a 400-foot radius of 245 West 51st Street, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on December 11, 2020 for the $366,850 renovation of 19,612-square-foot R-2 building with 16 residential units at 302 W 51st St.
One of those two items was a loan which Algin Management borrowed $145.6 million from New York Life Insurance Company secured by the 542,276-square-foot, 428-unit rental (D8) on 242 West 53rd Street on December 23, 2021.

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