Shulsky Properties signs $35M loan with Apple Bank for office in Penn Station

Shulsky Properties through the entity Skyler 330 LLC as borrower signed a loan with lender Apple Bank For Savings valued at $35 million for the office building at 330 Fifth Avenue in Penn Station, Manhattan.
The deal closed on June 2, 2022 and was recorded on June 13, 2022. The property has 179,472 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $195 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 13, 2002, for $7.1 million. The signatory for the borrower was Marvin R. Shulsky.

Prior sales and revenue

The 179,472-square-foot property generated revenue of $11.2 million or $62 per square foot, according to the most recent income and expense figures.

The property

The 330 5th Avenue parcel has frontage of 115 feet and is 100 feet deep with a total lot size of 11,575 square feet. The zoning is C5-2 which allows for up to 10 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 $46.8 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 four DOB violations 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 Penn Station, the majority, or 68 percent of the 22.9 million square feet of commercial built space are office buildings, with residential elevator buildings next occupying 11 percent of the space. In sales, Penn Station has near average sales volume among other neighborhoods with $315.7 million in sales volume in the last two years and is the 28th highest in Manhattan. For development, Penn Station has 2.6 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Manhattan. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 42 commercial properties representing 628,782 square feet of the 1,799,151 square feet. The largest owner is Burnett Equities, followed by Hersel Torkian and then Republic Investment Company. There is one active new building construction project totaling 188,281 square feet. It is a 223-unit, 188,281-square-foot R-2 building developed by Hersel Torkian with plans filed August 29, 2014 and permitted December 11, 2015.

The majority, or 58 percent of the 1.7 million square feet of built space are office buildings, with hotel buildings next occupying 24 percent of the space.

Surrounding

Within a 400-foot radius of 330 5th Avenue, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, two were sales above $5 million totaling $49.7 million. The most recent of the two was Edmund Jin and JLA Home which bought one condo unit in the 14,610-square-foot, 24-unit mixed-use building (RC) on 20 West 33rd Street for $14.4 million from 60 Guilders and Carlyle Group on June 10, 2022.
Of those eight items, six were loans above $5 million totaling $151 million. The most recent of the six was Cottonwood Group which borrowed $28 million from Walnut Hill Capital secured by the development site (V1) on 316 5th Avenue on March 31, 2022.

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