SHVO, Deutsche Finance sign $100M refi with Northwind for 50 unsold condos in Midtown East

SHVO and Deutsche Finance America through the entity Bsd 685 New York Propco LLC as borrower signed a refi loan with lender Northwind Group through the entity Nw 685 Fifth Senior Lender LLC valued at $100 million for 50 unsold residential condominium units at the 65-unit Mandarin Oriental condominium building at 685 Fifth Avenue in Midtown East, Manhattan. A Northwind press release said the total amount of “first-mortgage” debt was $120 million.
The deal closed on September 13, 2024 and was recorded on October 10, 2024. The prior lender was Northwind Group which held debt that had an original loan amount of $162.4 million. The 50 properties have 69,853 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,431 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 SHVO and Deutsche Finance America was Kevin Neuner. The signatory for Northwind Group was Ran Eliasaf. Northwind financed this loan with a $60 million participation loan from Axos Bank.

The property

The most recent loan totaled $162.4 million and was provided by Northwind Group on April 21, 2022.

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 not received any significant violations 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. On the tax lot, the most recent condominium plan was filed by BSD 685 NEW YORK PROPCO LLC to create 69 residential units in a building at 685 Fifth Avenue in Midtown East, Manhattan, called 685 Fifth Avenue Residences that has a $342.8 million sellout, according to an February 08, 2019 submission to the New York State Attorney General. The principals of the sponsor, BSD 685 NEW YORK PROPCO LLC, were Serdar Bilgili and Michael Shvo.

The block

On the tax block of 685 Fifth Avenue, PincusCo has identified the owners of eight of the 20 commercial properties representing 1,501,969 square feet of the 2,207,161 square feet. The largest owner is Tishman Speyer, followed by Korein Family and then ZG Capital Partners.
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 8 percent of the space.

The borrower

The PincusCo database currently indicates that Deutsche Finance America owned at least one commercial property in New York City with 310,000 square feet and a city-determined market value of $390.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single office property. It is located in Manhattan.

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