Sioni Group signs $143M refi with Valley for 625-unit hotel to resi conversion in Penn Plaza

Sioni Group through the entity CYH Manhattan LLC as borrower signed a refi loan with lender Valley National Bank  valued at $143 million where the owner plans to convert the hotel building (H1) at 371 Seventh Avenue in Penn Plaza, Manhattan into a 625-unit residential buildings. The financing also includes an adjacent garage building (G6) at 148 West 31st Street.

On these lots, there is one active major alteration construction project, M01141450, for a 625-unit square-foot R-2 building. The project was submitted by Sioni Group and filed by Jack Yadidi with plans filed December 5, 2024 and it has not been permitted yet.

The deal closed on July 9, 2025 and was recorded on July 16, 2025. The prior lender was Blackstone Group which held debt that had an original loan amount of $158.8 million. The two properties have 473,391 square feet of built space and 24,190 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $302 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 Sioni Group was Ray Yadidi .

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 371-377 7th Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ray Yadidi, head officer and Isaak Chetrit, shareholder. The business entities are Cyh Manhattan Llc and Cyh Manhattan Llc. Out of the two properties, one with a total of 473,391 square feet of built space generated revenue of $69.1 million per year.

The property

The parcel has frontage of 88 feet and is 200 feet deep with a total lot size of 19,011 square feet. The lot is irregular. The zoning is C6-4 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 $106 million.

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 $55,555 in OATH penalties in the last year.

The neighborhood

In Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has had very little sales volume relative to other neighborhoods with $223.9 million in sales volume in the last two years. For development, Penn Plaza has 2.9 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On the tax block of 371-377 7th Avenue, PincusCo has identified the owners of six of the 14 commercial properties representing 877,634 square feet of the 1,513,826 square feet. The largest owner is Vanbarton Group, followed by Altitude Capital Management and then Justin Management.
There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 1.5 million square feet of built space are office buildings, with hotel buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Sioni Group owned at least eight commercial properties with 300 residential units in New York City with 680,593 square feet and a city-determined market value of $203.9 million. (Market value is typically about 50% of actual value.) The portfolio has $391.7 million in debt, with top three lenders as Kennedy Wilson, Crum & Forster, and OdysseyRe respectively. Within the portfolio, the bulk, or 100 percent of the 680,593 square feet of built space are office properties, with specialty properties next occupying 0 percent of the space. They are all located in Manhattan.

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