Rybak Development signs $10M construction loan with Maxim in Midtown East

Rybak Development through the entity 660 Lexington Avenue Development LLC as borrower signed a new construction loan with lender Maxim Capital Group through the entity Maxim Credit Group, LLC valued at $10 million for the 23-unit new development at 656-660 Lexington Avenue in Midtown East, Manhattan.

On the lot, there is one active new building construction project for a 23-unit, 52,895 square-foot R-2 building. The project was submitted by Rybak Development and filed by Sergey Rybak with plans filed November 1, 2022.
The deal closed on May 4, 2023 and was recorded on June 7, 2023.
The owner bought the property on December 6, 2021, for $24.4 million. The signatory for Rybak Development was Sergey Rybak.

Prior sales and revenue

The 8,824-square-foot property generated revenue of $1.2 million or $137 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

The property was involved in two lawsuits and zero bankruptcies over the past two years. The highest value suit was a $2 million money judgment concerning a contract filed on June 5, 2022, by Rybak Development against Saundra Grundwerg, Joan Capaccio, and Mary Anderson Dillon. In addition, according to city public data, the property has received one DOB violation and $13,440 in OATH penalties in the last year.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 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 $3.9 billion in sales volume in the last two years. For development, Midtown East is the most active neighborhood among other neighborhoods. It had 17.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 27 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 25 commercial properties representing 1,121,074 square feet of the 1,446,501 square feet. The largest owner is Tokyu Land Corporation, followed by Time Equities and then Sovereign Partners.
On the tax block, there were three new building construction projects totaling 624,252 square feet. The largest is a 511,538 square-foot business (B) building submitted by L&L Holding Company and filed by William Potts with plans filed September 18, 2013 and permitted August 18, 2014. The second largest is a 62-unit, 59,819 square-foot residential (R-2) building submitted by Zeckendorf Development and filed by Arthur Zeckendorf Iii with plans filed August 12, 2019 and permitted January 28, 2020.

The majority, or 82 percent of the 1.4 million square feet of built space are office buildings, with hotel buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Rybak Development owned at least four commercial properties with 21 residential units in New York City with 81,403 square feet and a city-determined market value of $27.7 million. (Market value is typically about 50% of actual value.) The portfolio has $257.1 million in debt, with top three lenders as Valley National Bank, MF1 Capital, and Bank Leumi respectively. Within the portfolio, the bulk, or 46 percent of the 81,403 square feet of built space are elevator properties, with development properties next occupying 43 percent of the space. The bulk, or 57 percent of the built space, is in Manhattan, with Queens next at 43 percent of the space.

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