Slate signs $38.8M rehab construction loan with Cerco Funding for property in Greenwich Village

Slate Property Group through the entity 118 West 13th Street Owner LLC as borrower signed a rehab construction loan with lender Cerco Funding through the entity Cerco Bridge Loans 6 LLC valued at $38.8 million for the building (H8) at 118 West 13th Street in Greenwich Village, Manhattan.
The deal closed on April 19, 2023 and was recorded on April 26, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $13.5 million. The property has 28,516 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,360 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 September 9, 2021, for $22.9 million. The signatory for Slate Property Group was Martin Nussbaum. The signatory for Cerco Funding was Michael Bodnev.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Daniel Hochberg, head officer. The business entity is 118 West 13th Street Owner Llc.

The property

The building in Greenwich Village has 28,516 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 62 feet and is 103 feet deep with a total lot size of 6,452 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property is in the Greenwich Village Historic District. The city-designated market value for the property in 2022 is $6.2 million. The most recent loan totaled $13.5 million and was provided by Signature Bank on September 9, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,840 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a seven-unit, 27,872 square-foot R-2 building. The project was submitted by David Schwartz with plans filed December 8, 2021 and it has not been permitted yet.

The neighborhood

In Greenwich Village, The bulk, or 24 percent of the 22.4 million square feet of commercial built space are specialty buildings, with hotel buildings next occupying 17 percent of the space. In sales, Greenwich Village has 3.5 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Greenwich Village has 2.7 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 17 commercial properties representing 68,407 square feet of the 157,381 square feet. The largest owner is Slate Property Group, followed by Abraham Sanieoff and then A Sanieoff.
There are no active new building construction projects on this tax block.

The majority, or 26 percent of the 157,381 square feet of built space are elevator buildings, with mixed-use buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Slate Property Group owned at least 39 commercial properties with 2,362 residential units in New York City with 2,346,432 square feet. The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 83 percent of the 2,346,432 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 19 percent of the space.

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