Rudin signs $30M refi with State Farm for 172-unit rental in Lenox Hill

Rudin Management through the entity 254 East 68th Street Inc. as borrower signed a refi loan with lender State Farm Mutual Automobile Insurance Company valued at $30 million for the 172-unit residential elevator building (D6) at 254 East 68th Street in Lenox Hill, Manhattan.
The deal closed on July 13, 2022 and was recorded on August 5, 2022. The prior lender was Prudential Financial which held debt that had an original loan amount of $21.5 million.The property has 348,130 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $86 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 December 31, 2012, for $26.9 million. The signatory for Rudin Management was Andrew Migdon. The signatory for State Farm Mutual Automobile Insurance Company was Mark J. Cavanaugh and Matthew D. Melick.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Eric Rudin, head officer and William Rudin, officer. The business entities are Rudin Management Co and 254 East 68th Street, Inc. The 348,130-square-foot property generated revenue of $16.4 million or $47 per square foot, according to the most recent income and expense figures.

The property

The 254 E. 68th Street parcel has frontage of 200 feet and is 125 feet deep with a total lot size of 24,268 square feet. The lot is irregular. The zoning is C1-9 which allows for up to 2 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 $68.3 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 $10,000 in ECB penalties and $16,700 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 26, 2017. 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 three of the 11 commercial properties representing 604,182 square feet of the 837,941 square feet. The largest owner is BLDG Management, followed by Rudin Management and then Feil Organization.
There are no active new building construction projects on this tax block.

The majority, or 73 percent of the 835,072 square feet of built space are elevator buildings, with office buildings next occupying 19 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 $785.5 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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