Rockrose ups debt by $98M to $138.7M at 340-unit rental in Battery Park City
Rockrose Development through the entity Tribeca Pointe L.L.C. as borrower signed a refi loan with lender Wells Fargo valued at $138.7 million for the 340-unit residential elevator building (D8) at 399 Chambers Street in Battery Park City, Manhattan.
The deal closed on February 17, 2023 and was recorded on March 7, 2023. The prior lender was Fannie Mae which held debt that had an original loan amount of $56.5 million. The property has 357,000 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $388 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 acquired the property on September 29, 2009, for $102.4 million in a division of the Elghanayan holdings. The signatory for Rockrose Development was Richard A. Brancato. The signatory for Wells Fargo was Christian Adrian. The outstanding debt is $40.9 million on the original loan provided in 1999. The new debt is $97.8 million.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Joseph Flanagan, head officer and Justin Poy, officer. The business entity is Tribeca Pointe Llc. The 357,000-square-foot property generated revenue of $18.1 million or $51 per square foot, according to the most recent income and expense figures.
The property
The 399 Chambers Street parcel has frontage of 100 feet and is 121 feet deep with a total lot size of 10,292 square feet. The lot is irregular. The city-designated market value for the property in 2022 is $85.6 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 not received any significant violations 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 block
On this tax block, PincusCo has identified the owners of 18 of the 66 commercial properties representing 14,082,604 square feet of the 17,956,676 square feet. The largest owner is Related Companies, followed by Cohen Equities and then Milstein Properties.
On the tax block, there were two new building construction projects totaling 19,798 square feet. The largest is a zero-unit, 18,798-square-foot A-2 building developed by Gwen Dawson with plans filed February 2, 2022 and it has not been permitted yet.The second largest is a N/A-unit, 1,000-square-foot U building developed by Gwen Dawson with plans filed February 3, 2016 and permitted November 15, 2016.
The majority, or 69 percent of the 15.7 million square feet of built space are office buildings, with elevator buildings next occupying 27 percent of the space.
The borrower
The PincusCo database currently indicates that Rockrose Development owned at least 28 commercial properties in New York City with 6,007,162 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Wells Fargo, MetLife, and Deutsche Pfandbriefbank respectively. Within the portfolio, the bulk, or 75 percent of the 6,007,162 square feet of built space are elevator properties, with D4 properties next occupying 15 percent of the space. The bulk, or 45 percent of the built space, is in Manhattan, with Queens next at 39 percent of the space.
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