SHVO, Deustche Finance sign $162.4M refi with Northwind Group for high-end condo in Midtown East

UPDATED 11:45 a.m., May 5, 2022: SHVO and Deutsche Finance Group through the entity Bsd 685 New York Propco LLC as borrower signed a new construction loan with lender Northwind Group through the entity Nw 685 Fifth Avenue Lender LLC valued at $162.4 million for the 69-unit high-end condominium project at 683-685 Fifth Avenue in Midtown East, Manhattan.
The deal closed on April 21, 2022 and was recorded on May 4, 2022. The prior lender was CIM Group which held debt that had an original loan amount of $120 million. The property has 75,232 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $2,158 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 July 13, 2018, for $135 million. The signatory for SHVO was Kevin Neuner. The signatory for Northwind Group was Ran Eliasaf. TradedNY first reported the loan. Aaron Appel of Walker & Dunlop was the broker on the deal, according to the report.

The property will be managed by the Mandarin Oriental hospitality company and will include a private Daniel Boulud restaurant for residents.

The property

The 683-685 Fifth Avenue parcel has a total lot size of 75,232 square feet. The city-designated market value for the property in 2022 is $21.6 million.The most recent loan totaled $120 million and was provided by CIM Group on December 11, 2019.

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 not received any significant violations in the last year.

Development

On the tax lot, there was a condominium project filed with the address 685 Fifth Avenue and the name 685 Fifth Avenue Residences on February 8, 2019. The principals of the sponsor, BSD 685 NEW YORK PROPCO LLC, were Serdar Bilgili and Michael Shvo.

The block

On this tax block, PincusCo has identified the owners of six of the 22 commercial properties representing 1,191,883 square feet of the 2,302,217 square feet. The largest owner is Tishman Speyer, followed by Michael Shvo and then David Werner Real Estate. There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 2.2 million square feet of built space are office buildings, with retail buildings next occupying 6 percent of the space.

Surrounding

Within a 400-foot radius of 683-685 Fifth Avenue, Pincusco identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, one was in new building development. It was a new building permit application filed on June 23, 2021 for a 155,883-square-foot B building at 665 Fifth Avenue.
Of those six items, two were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $8.7 million. The most recent of these two items was the permit on July 14, 2020 for a 106,202-square-foot R-2 building with 69 residential units at 685 5th Avenue.
Of those six items, two were sales above $5 million totaling $23.5 million. The most recent of the two was Brookfield Properties which bought one condo unit in the 1,169,666-square-foot, three-unit mixed-use building (RC) on 666 5th Avenue for $15 million from Akerman LLP on August 11, 2020.
One of those six items was a loan which Kiton borrowed $11 million from Banca Ifis secured by the 20,712-square-foot, one-unit office building (O5) on 4 East 54th Street on January 14, 2022.

Correction: A prior version of this post incorrectly reported that the 69 units would be rentals, when in fact they will be for-sale condominium units. The post also incorrectly included Bilgili Group as part of the borrower venture but it is no longer part of the ownership.

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