S.W. Management signs $42.8M refi for 132-unit rental in Upper West Side

S.W. Management through the entity 585 W.E.A. Realty LLC as borrower signed a refi loan with lender Signature Bank valued at $42.8 million for the 132-unit residential elevator building (D6) at 585 West End Avenue in Upper West Side, Manhattan.
The deal closed on August 10, 2022 and was recorded on August 25, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $45 million. The property has 209,113 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $204 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 April 30, 2013, for $1.8 million. The signatory for S.W. Management was Alan Wasserman. The signatory for Signature Bank was Konstantinos Venetsanakos.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Scott Goldenberg, head officer and David Berger, site manager. The business entity is 585 W.E.A. Realty Llc. The 209,113-square-foot property generated revenue of $6 million or $29 per square foot, according to the most recent income and expense figures.

The property

The 585 West End Avenue parcel has frontage of 100 feet and is 156 feet deep with a total lot size of 15,711 square feet. The zoning is R10A which allows for up to 10 times floor area ratio (FAR) for residential with inclusionary housing. The property is in the Riverside-West End Historic District. The city-designated market value for the property in 2022 is $25.3 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 five DOB violations and one housing 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 block

On this tax block, PincusCo has identified the owners of 17 of the 34 commercial properties representing 317,386 square feet of the 429,293 square feet. The largest owner is S.W. Management, followed by Shirley Fong and then MSB Management.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 429,293 square feet of built space are walkup buildings, with elevator buildings next occupying 49 percent of the space.

The borrower

The PincusCo database currently indicates that S.W. Management owned at least 213 commercial properties in New York City with 6,433,598 square feet and a city-determined market value of $1.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $572.6 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Deutsche Bank respectively. Within the portfolio, the bulk, or 65 percent of the 6,433,598 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 75 percent of the built space, is in Manhattan, with Queens next at 24 percent of the space.

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