Rockrose ups debt to $293.1M with Wells Fargo for 590-unit rental in Hudson Yards

Rockrose Development through the entity West 38 Res L.L.C. as borrower signed a refi loan with lender Wells Fargo valued at $293.1 million for the 590-unit residential elevator building (D7) at 476 11th Avenue in Hudson Yards, Manhattan.
The deal closed on December 8, 2023 and was recorded on December 13, 2023. The prior lender was Wells Fargo which held debt that had an original loan amount of $255 million.
The property has 467,131 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $627 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 September 29, 2009, for $70 million. The signatory for Rockrose Development was Richard A. Brancato. The signatory for Wells Fargo was Christian Adrian.

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 West 38 Res L.L.C.

The property

The residential elevator building with 590 residential units in Hudson Yards has 467,131 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 197 feet and is 87 feet deep with a total lot size of 15,140 square feet. The zoning is C6-4 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 $160.3 million. The most recent loan totaled $255 million and was provided by Wells Fargo on December 18, 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 $3,050 in OATH penalties in the last year.

Development

On the lot, there was a new building construction project for a 591-unit, 407,202 square-foot R-2 building. The project was submitted by Rockrose Development and filed by Peter Donohoe with plans filed September 25, 2018 and permitted November 3, 2020.

The block

On this tax block, PincusCo has identified the owners of one of the eight commercial properties representing 467,131 square feet of the 746,026 square feet. The identified owner is Rockrose Development.
On the tax block, there was one new building construction project filed totaling 407,202 square feet. It is a 591-unit, 407,202 square-foot residential (R-2) building submitted by Rockrose Development and filed by Peter Donohoe with plans filed September 25, 2018 and permitted May 31, 2019.

The majority, or 63 percent of the 746,026 square feet of built space are elevator buildings, with industrial buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Rockrose Development owned at least 31 commercial properties with 5,561 residential units in New York City with 6,286,857 square feet and a city-determined market value of $1.6 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Wells Fargo, MetLife, and Deutsche Pfandbriefbank respectively. Within the portfolio, the bulk, or 72 percent of the 6,286,857 square feet of built space are elevator properties, with D4 properties next occupying 14 percent of the space. The bulk, or 43 percent of the built space, is in Manhattan, with Queens next at 37 percent of the space.

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