Sapir signs $90.1M refi through TASE for NoMo SoHo Hotel in Little Italy, down from $115M

Sapir Organization through the entity 9 Crosby LLC as borrower signed a refi loan with lender Tel Aviv Stock Exchange bondholders through the entity Mishmeret Company Ltd valued at $90.1 million for the NoMo SoHo Hotel building (H1) at 9 Crosby Street in Little Italy, Manhattan.
The deal closed on August 16, 2022 and was recorded on August 18, 2022. The prior lender was Goldman Sachs which held debt that had an original loan amount of $115 million. The property has 121,165 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $743 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 March 6, 2015, for $200 million. The signatory for Sapir Organization was Sharon Raz. The signatory for Tel Aviv Stock Exchange bondholders was Michael Friedman.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Sapir Corporation, head officer and Sharon Raz, lessee. The business entities are 9 Crosby Mezz Llc and 9 Crosby Mezz Llc Dba Nomo Soho. The 121,165-square-foot property generated revenue of $28.7 million or $237 per square foot, according to the most recent income and expense figures.

The property

The 9 Crosby Street parcel has frontage of 50 feet and is 99 feet deep with a total lot size of 14,470 square feet. The zoning is M1-5B which allows for up to 5 times floor area ratio (FAR) for manufacturing The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $51 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 and $3,745 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 $5 million on this tax lot.

The neighborhood

In Little Italy, the bulk, or 33 percent of the 4.1 million square feet of commercial built space are office buildings, with walkup buildings next occupying 25 percent of the space. In sales, Little Italy has had very little sales volume relative to other neighborhoods with $109.7 million in sales volume in the last two years. For development, Little Italy has had very little major development activity relative to other neighborhoods.It had 59,359 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 13 commercial properties representing 119,499 square feet of the 443,531 square feet. The largest owner is Cape Advisors, followed by Boquen Realty and then RWN Management.
There are no active new building construction projects on this tax block.

the majority, or 66 percent of the 443,531 square feet of built space are office buildings, with hotel buildings next occupying 27 percent of the space.

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