Rockfeld Group signs $13.8M refi with JPMorgan Chase for mixed-use in Harlem

Rockfeld Group through the entity Three West 125th Street (DE), LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $13.8 million for the mixed-use building (K2) at 1 West 125th Street in Harlem, Manhattan.
The deal closed on October 22, 2024 and was recorded on October 28, 2024. The prior lender was Series 2014-C19 which held debt that had an original loan amount of $13.5 million.The property has 26,880 square feet of built space and 16,667 square feet of additional air rights for a total buildable of 43,576 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $513 and the price per buildable square foot is $316 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 February 1, 2008, for $15 million. The signatory for Rockfeld Group was Steven Feldman. The signatory for JPMorgan Chase was Jennifer R. Lewin.

The property

The mixed-use building in Harlem has 26,880 square feet of built space and 16,667 square feet of additional air rights for a total buildable of 43,576 square feet according to a PincusCo analysis of city data. The parcel has frontage of 99 feet and is 110 feet deep with a total lot size of 10,894 square feet. The lot is irregular. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9 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 $4,155 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 Harlem, The bulk, or 43 percent of the 81.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 3.3 times the average sales volume among other neighborhoods with $822.9 million in sales volume in the last two years and is the 10th highest in Manhattan. For development, Harlem has 2.5 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 2.8 million 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 eight of the 31 commercial properties representing 248,869 square feet of the 643,603 square feet. The largest owner is Alex Adjmi, followed by Rockfeld Group and then Denali Management.
On the tax block, there was one new building construction project filed totaling 119,064 square feet. It is a 162-unit, 119,064 square-foot residential (R-2) building submitted by Mark Irgang with plans filed March 21, 2022 and permitted June 7, 2022.

The majority, or 46 percent of the 643,603 square feet of built space are office buildings, with retail buildings next occupying 32 percent of the space.

The borrower

The PincusCo database currently indicates that Rockfeld Group owned at least 12 commercial properties with seven residential units in New York City with 86,146 square feet and a city-determined market value of $35.6 million. (Market value is typically about 50% of actual value.) The portfolio has $78.3 million in debt, with top three lenders as Goldman Sachs, Granite Point Mortgage Trust, and Northfield Bank respectively. Within the portfolio, the bulk, or 40 percent of the 86,146 square feet of built space are mixed-use properties, with retail properties next occupying 32 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Brooklyn next at 41 percent of the space.

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