Rose Associates signs $164.5M refi for 407-unit rental in Flatiron District

Rose Associates through the entity Marine Estates LLC as borrower signed a refi loan with the NYS Housing Finance Agency which issued bonds purchased by Wells Fargo, valued at $164.5 million for the 407-unit residential elevator building (D7) at 55 West 25th Street in Flatiron District, Manhattan.
The deal closed on July 28, 2022 and was recorded on October 12, 2022. The prior lender was NYS Housing Finance Agency which held debt that had an original loan amount of $173.3 million. The property has 428,340 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $384 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 signatory for Rose Associates was Amy Rose Silverman. Wells Fargo is buying the bonds.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Adam Rose, head officer and Amy Rose Silverman, officer. The business entities are Rose Associates Inc. and Marine Estates Llc. The 428,340-square-foot property generated revenue of $22.8 million or $53 per square foot, according to the most recent income and expense figures.

The property

The 55 West 25th Street parcel has frontage of 197 feet and is 127 feet deep with a total lot size of 29,625 square feet. The lot is irregular. The zoning is C6-4X 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 property has a 421A exemption that started in 2009 and expires in 2029. The city-designated market value for the property in 2022 is $131.5 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 received $1,450 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 $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of one of the 20 commercial properties representing 14,217 square feet of the 1,083,477 square feet. The identified owner is William Bouton.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 1.1 million square feet of built space are office buildings, with elevator buildings next occupying 41 percent of the space.

The borrower

The PincusCo database currently indicates that Rose Associates owned at least eight commercial properties in New York City with 1,320,124 square feet and a city-determined market value of $319 million. (Market value is typically about 50% of actual value.) The portfolio has $650 million in debt, with top three lenders as Goldman Sachs, NYS Housing Finance Agency, and MetLife respectively. Within the portfolio, the bulk, or 59 percent of the 1,320,124 square feet of built space are rental condo properties, with elevator properties next occupying 25 percent of the space. They are all located in Manhattan.

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