Rockbridge Capital signs $28.5M refi loan with BankUnited for hotel in Garment District

Rockbridge Capital through the entity 59 West 35th Street LLC as borrower signed a refi loan with lender BankUnited valued at $28.5 million for the hotel building (H3) at 57 West 35th Street in Garment District, Manhattan.
The deal closed on May 6, 2024 and was recorded on May 13, 2024. The prior lender was PNC Bank which held debt that had an original loan amount of $35 million. The property has 55,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $518 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 December 9, 2011, for $68.2 million. The signatory for Rockbridge Capital was Tamre F. Edwards. The signatory for BankUnited was Carly Berfas. Rockbridge bought the hotel in 2011 for $68.2 million.

The property

The hotel building in Garment District has 55,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 98 feet deep with a total lot size of 4,905 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 $21.2 million.

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 and $2,435 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 Garment District, The majority, or 69 percent of the 51.8 million square feet of commercial built space are office buildings, with hotel buildings next occupying 12 percent of the space. In sales, Garment District has 1.8 times the average sales volume among other neighborhoods with $482.1 million in sales volume in the last two years and is the 18th highest in Manhattan. For development, Garment District is the 5th most active neighborhood among other neighborhoods. It had 7.3 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 this tax block, PincusCo has identified the owners of 14 of the 33 commercial properties representing 809,110 square feet of the 1,436,912 square feet. The largest owner is Yosef Nazar, followed by Toni Park and then Rosen Equities.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 43 percent of the space.

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