Rudin Management signs $55M refi loan with M&T Bank for office in Midtown East
Rudin Management through the entity 560 Lexco L.P. as borrower signed a refi loan with lender M&T Bank through the entity Manufacturers And Traders Trust Company valued at $55 million for the office building (O4) at 560 Lexington Avenue in Midtown East, Manhattan.
The deal closed on November 22, 2022 and was recorded on November 30, 2022. The prior lender was Axa Equitable Life Insurance Company which held debt that had an original loan amount of $50 million. The property has 345,743 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $159 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 Rudin Management was Andrew Migdon. The signatory for M&T Bank was Adam Wagonseller.
Prior sales and revenue
The 345,743-square-foot property generated revenue of $24.8 million or $72 per square foot, according to the most recent income and expense figures.
The property
The 560 Lexington Avenue parcel has frontage of 89 feet and is 180 feet deep with a total lot size of 17,350 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 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 $83.6 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 received one DOB violation 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 neighborhood
In Midtown East, the majority, or 82 percent of the 61.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the 2nd highest sale turnover among other neighborhoods in the city with $3.3 billion in sales volume in the last two years. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 15.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 24 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of five of the 10 commercial properties representing 1,217,015 square feet of the 1,909,304 square feet. The largest owner is Hawkins Way Capital, followed by Feil Organization and then Sonesta International Hotels.
there are no active new building construction projects on this tax block.
The majority, or 63 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 33 percent of the space.
The borrower
The PincusCo database currently indicates that Rudin Management owned at least 21 commercial properties in New York City with 6,726,292 square feet and a city-determined market value of $2.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $815.5 million in debt, with top three lenders as JPMorgan Chase, Bank of America, and PGIM Real Estate respectively. Within the portfolio, the bulk, or 60 percent of the 6,726,292 square feet of built space are office properties, with elevator properties next occupying 40 percent of the space. They are all located in Manhattan.
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