Slate Property Group signs $209.8M loan with JPMorgan Chase for 17 institutional properties in NYC
Slate Property Group through the entity 161 Lexington Ave Propco LLC (and others) as borrower signed a refi loan with lender JPMorgan Chase valued at $209.8 million for 17 properties including homeless shelters. The properties include the specialty building (I1) at 427 West 52nd Street in Hell’s Kitchen, Manhattan, specialty building (N2) at 141 West 144th Street in Harlem, Manhattan, and hotel building (H3) at 399 3rd Avenue in Gowanus, Brooklyn.
The Real Deal reported on this transaction.
The deal closed on August 5, 2024 and was recorded on August 14, 2024. The prior lender was Mizuho Bank which held debt that had an original loan amount of $209.8 million.The 17 properties have 195,763 square feet of built space and 33,715 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $1,071 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 Slate Property Group was Stephen Krasman. The signatory for JPMorgan Chase was Jessica Wong. These are institutional buildings including homeless shelters. Previously the borrower signatory was Yoel Zeigelbaum.
Development
For the tax lot buildings, eight out of the 17 buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
The neighborhood
In Harlem, The bulk, or 43 percent of the 81.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Harlem has 2.5 times the average sales volume among other neighborhoods with $653.8 million in sales volume in the last two years and is the 12th highest in Manhattan. For development, Harlem has 2.8 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Manhattan. It had 3 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block of 141 West 144th Street, PincusCo has identified the owners of nine of the 12 commercial properties representing 178,269 square feet of the 210,895 square feet. The largest owner is New York City Housing Authority, followed by Coltown Properties and then Infinite Horizons.
On the tax block, there were two new building construction projects totaling 117,036 square feet. The largest is a 12-unit, 68,841 square-foot residential (R-2) building submitted by Coltown Properties and filed by Bruce Teitelbaum with plans filed October 6, 2021 and permitted May 3, 2022. The second largest is a 12-unit, 48,195 square-foot residential (R-2) building submitted by Coltown Properties and filed by Bruce Teitelbaum with plans filed October 6, 2021 and permitted May 16, 2022.
The majority, or 69 percent of the 210,895 square feet of built space are walkup buildings, with retail buildings next occupying 27 percent of the space.
The borrower
The PincusCo database currently indicates that Slate Property Group owned at least 53 commercial properties with 2,824 residential units in New York City with 3,060,442 square feet and a city-determined market value of $747.9 million. (Market value is typically about 50% of actual value.) The portfolio has $1.4 billion in debt, with top three lenders as Mack Real Estate Group, Apollo Global Management, and Signature Bank respectively. Within the portfolio, the bulk, or 78 percent of the 3,060,442 square feet of built space are elevator properties, with walkup properties next occupying 10 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Queens next at 29 percent of the space.
Direct link to Acris document. link