Sachs Companies signs $50.5M refi with 3650 REIT for two properties in Midtown East
Sachs Companies through the entity 155 East Property Owner LLC as borrower signed a refi loan with lender 3650 REIT through the entity 3650 Real Estate Investment Trust 2 LLC valued at $50.5 million for two properties with 161 residential units including the 56-unit office building (O6) at 155 East 55th Street in Midtown East, Manhattan and 105-unit residential elevator building (D6) at 210 East 58th Street in Midtown East, Manhattan.
The deal closed on July 10, 2024 and was recorded on July 17, 2024. The prior lender was Prime Finance.
The two properties have 221,136 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $228 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 Sachs Companies was Curtis Sachs. The signatory for 3650 REIT was Tobin Cobb.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Curtis Sachs, head officer and Dean Palin, officer. The business entities are J&M Realty Services Corp. and 210 East Property Llc.
The property
The residential elevator building with 105 residential units. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $18.9 million. The most recent loan totaled $48.6 million and was provided by Prime Finance on June 17, 2024.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received six DOB violations, $12,500 in ECB penalties, and $21,150 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 $1 million on this tax lot.
The block
On the tax block of 210 East 58th Street, PincusCo has identified the owners of five of the 24 commercial properties representing 130,612 square feet of the 275,247 square feet. The largest owner is Witnick Real Estate Partners, followed by Sassouni Management and then Sachs Companies.
There are no active new building construction projects on this tax block.
The majority, or 38 percent of the 275,247 square feet of built space are mixed-use buildings, with elevator buildings next occupying 31 percent of the space.
The borrower
The PincusCo database currently indicates that Sachs Companies owned at least two commercial properties with 161 residential units in New York City with 221,136 square feet and a city-determined market value of $35.6 million. (Market value is typically about 50% of actual value.) The portfolio has $129.8 million in debt, borrowed from Prime Finance Partners and Prime Finance. Within the portfolio, the bulk, or 62 percent of the 221,136 square feet of built space are office properties, with elevator properties next occupying 38 percent of the space. They are all located in Manhattan.
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